| | |  Business News 
Mexican Tycoon Slim Moves Toward Telecom Tie-Up
 Noel Randewich - Reuters
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March 18, 2010
 |  | Once Slim's companies are combined, America Movil will have clients with a total of 250 million connections, making it one of the world's largest telecom operators. |  | | |
Mexico City - Tycoon Carlos Slim, the world's richest man, moved a step closer to consolidating his telecom assets this week as America Movil shareholders backed a plan to acquire his other operators.
At a meeting, shareholders formally signed off on the plan for America Movil to make tender offers for Carso Global Telecom, which controls dominant Mexican fixed-line operator Telmex, and regional operator Telmex Internacional, or Telint.
Slim, who beat Microsoft founder Bill Gates to top Forbes' list of the world's wealthiest people last week, controls all of the companies involved in the consolidation, which was announced in January and also includes an offer for shares of Telint not owned by Carso Global Telecom.
Slim's next step will be for America Movil to officially launch its offers.
As regional competition in telecommunications heats up, Slim wants to integrate his companies to create a provider with fixed-line telephone, mobile and Internet services across Latin America to better challenge rivals.
Once Slim's companies are combined, America Movil will have clients with a total of 250 million connections, making it one of the world's largest telecom operators and putting it ahead of rival Telefonica's 169 million fixed-line, wireless, Internet and television connections across Latin America.
America Movil has set aside 9.8 billion shares in its treasury to pay for the transactions, according to a recent regulatory filing, worth almost $24 billion on Wednesday.
With more than 80 percent market share, Telmex remains by far Mexico's largest fixed-line telephone and Internet operator, although it is no longer the crown jewel of Slim's empire as it freezes prices for a 10th straight year to stem customer losses.
Telmex is increasingly challenged as its clients switch to services offered by media giant Televisa, smaller cable television operators and wireless operators including Telefonica Slim's own America Movil.
Following the consolidation, Telmex would continue to operate and would remain listed on the Mexican stock exchange. Telmex Internacional would be delisted from the stock market and become part of America Movil.
Shares in America Movil gained 0.3 percent on Wednesday to 30.53 pesos.
America Movil plans to offer 2.0474 of its shares for every share of Carso Global Telecom, a slight premium over Wednesday's price.
America Movil is also offering 0.373 of its shares for every share of Telmex Internacional outside of Carso Global Telecom or 11.66 pesos per share in cash. ($1 = 12.50 pesos)
(Editing by Tim Dobbyn)
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