April 18, 2018 / 10:55 PM / 2 years ago

AT&T unit Vrio postpones IPO - source

April 18 (Reuters) - The initial public offering of Vrio Corp, AT&T Inc’s DirecTV business in Latin America, has been postponed, a source familiar with the matter said on Wednesday.

Earlier on Wednesday, bookrunners Goldman Sachs, JP Morgan, Citigroup and Morgan Stanley downsized the television service provider’s IPO to 15 million Class A shares from 29.7 million Class A shares, following significant investor pushback.

The IPO’s indicated price range was also lowered to $16 to $17 each from the prior $19-$22 per share on Wednesday.

The company’s stock was originally scheduled to debut on the New York Stock Exchange under the symbol “VRIO” on Thursday.

Cable television service providers have been facing tough competition as the industry battles with customers cancelling accounts and moving to video streaming services such as Netflix Inc and Amazon.com Inc’s Amazon Prime.

AT&T’s initial plan was to sell Vrio to pay down debt which will increase to about $180 billion once its acquisition of Time Warner Inc closes.

AT&T in February filed confidentially for an IPO for the unit, which includes satellite and cable television services in Brazil, Colombia, Argentina, among others, prompting analysts to say that the No. 2 U.S. wireless carrier probably was not able to find a buyer. (Reporting by Nikhil Subba in Bengaluru; editing by Clive McKeef)

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