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Televisa battles on for wireless merger approval
Tuesday, 21 February 2012 06:34

Mexican media and communications cartel Grupo Televisa SAB ingeminated Friday its attempts to assuage concerns expressed by the country's antitrust agency regarding a proposed joint venture between Televisa and mobile-phone operator Iusacell. Earlier this month the Federal Competition Commission repealed Televisa's $1.6 billion investment for a 50% stake in Iusacell, one of Mexico's smaller telcos, fearing that it would threaten competition in the television advertising market. Iusacell is controlled by businessman Ricardo Salinas Pliego, who also controls Mexico’s second largest television broadcaster TV Azteca SAB. Amongst them, Televisa and TV Azteca control practically all of the commercial free-to-air broadcast television in the country. Televisa Executive Vice President Alfonso de Angoitia, while speaking at a conference call with analysts Friday said while Televisa understands the commission’s concerns about the deal, such "hypothetical collusion" in the TV market has never occurred in the past, and would have criminal implications should it occur in the future. Televisa is in an embarrasing situation of having already completed its investment in Iusacell during the fourth quarter, with $37.5 million dispensed in the form of equity and $1.57 billion in convertible debt. The debt earns a 2% coupon and must be converted to equity by December 2015.

 

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