April 24, 2018 / 1:03 PM / in a month

Millicom says DOJ closes investigation in Guatemala

STOCKHOLM (Reuters) - The U.S. Department of Justice has informed Millicom it has closed its investigation on “potential improper payments” for its joint venture in Guatemala, the emerging markets telecoms and media group said on Tuesday.

Millicom shares were up 2.1 percent at 571 crowns by 1235 GMT.

“We had an estimate of a $200 million fine so the share reaction is reasonable,” said DNB analyst Stefan Gauffin, who has a buy recommendation and target price of 655 crowns.

“I think some investors have avoided Millicom shares due to this matter, so it should long term be a positive factor.”

Millicom said in October 2015 it had reported to U.S. and Swedish authorities potential improper payments on behalf of its joint-venture in Guatemala, which sent its shares down as much as 12 percent.

Reporting by Olof Swahnberg, editing by Louise Heavens

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