Mexico's Televisa has eyes on Satmex satellite firm

MEXICO CITY (Reuters) - Televisa said it is interested in buying Satmex, a move that could return it to the satellite business, cut transmission costs and strengthen the Mexican broadcaster's footprint from Canada to Argentina.

Satmex is Mexico's main satellite operator but the company was in financial trouble until it refinanced its bulky debt last year.

Televisa said it had not decided yet if it will bid for the firm.

"We are just analyzing it. We are in the process of due diligence. We are learning about that business, about the synergies that it would have with other (Televisa) business segments," executive vice president Alfonso De Angoitia told an analysts' conference call on Thursday.

Due diligence is an investigation of a potential investment and helps companies gather key information regarding a sale.

"However, we have not made any decision yet on whether we are going forward or not," De Angoitia added.

Satmex said last month that it expected to go on auction during the first half of May. European and U.S. satellite operators are also looking at the company.

Televisa uses satellite signals to transmit its programming to partners all across the American continent. The potential acquisition could help cut those transmission costs and get additional revenue from renting Satmex transponders to other broadcasters.

In 1998, Televisa pulled out from a venture it had with PanAmSat by selling its stake in the satellite operator to Hughes Electronics Corp.

Televisa shares ended up 0.42 percent at 66.40 pesos while its New York Big Board traded shares edged up 0.4 percent to close at $30.12.