MEXICO CITY, March 19 Mexican tycoon Carlos
Slim's telecom giant, America Movil, aims to boost by
40 billion pesos ($3.21 billion) the fund it uses to repurchase
shares, the company said in a statement to the Mexican stock
exchange on Tuesday.
The repurchase fund increase would need to be approved at
the annual shareholder meeting on April 30, the statement said.
The announcement came just more than a week after Mexico
launched a sweeping reform of the sector, which is aimed at
spurring foreign investment and boosting competition in
telecommunications. It will give regulators the power to force
companies to sell assets if they have more than 50 percent of
The company's shares have since fallen nearly 12 percent,
prompting aggressive share buybacks by the firm.
On Friday alone, the company's treasury purchased 150
million shares for a total of 1.837 billion pesos ($147.6
million) to boost the share price, which hit a four-year low the
same day. The shares bounced back 1.55 percent on Tuesday.
The reform was approved last Thursday by a lower house
committee for constitutional matters. It is expected to be
presented to the floor of the House for a vote this week and, if
approved, would then head to the Senate.
Slim, the world's richest man, controls some 70 percent of
Mexico's mobile market and 80 percent of its fixed phone lines.
He has so far hailed the reform as a means to boost access
to broadband Internet access and buoy telecom sector
competition, but has not commented on the measure's impact on
his own business.