America Movil SAB de CV (ADR) (AMOV) Management Discusses Q2 2013 Results - Earnings Call Transcript
Jul 26 2013, 22:30
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Mauricio Fernandes - BofA Merrill Lynch, Research Division
So I have a question on KPN and, more specifically, on Telmex. You announced on Telmex, I think a couple weeks ago, the spinoff of some assets. And I would like to know which are these assets, how relevant they are and what's the strategy? Secondly, on KPN, specifically the transaction between Telefonica and E-Plus, I'm not sure if you can comment or will comment, how you think about it and what are the next steps there, please?
Daniel Hajj Aboumrad
Well, first on -- Mauricio, thanks for the question. First on Telmex, this is a corporate decision in order to spin off some assets that are not directly related to the telecommunication services. These are businesses that are focused more on real estate and leasing, so the spinoff that we're going to do is to consolidate all the real estate and leasing companies inside América Móvil, and not to have a lot of real estate companies inside of América Móvil. I feel it's not -- this proposal is not connected with the telecom business of Telmex, okay? So that's on Telmex. And the second, on KPN. I think the only thing that I can say is that, we will evaluate the terms and conditions of the transaction announced by KPN regarding its subsidiary in Germany, E-Plus. And when those are presented to KPN shareholders, and we'll make a determination at that point in time. I think that's the only thing that we are doing at this moment.
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Mauricio Fernandes - BofA Merrill Lynch, Research Division
Okay. And sorry, another follow-up on KPN. So strategically speaking, there's a potential for the deal to happen or not to happen, obviously. And if it does happen, basically KPN becomes the Netherlands and Belgium, but obviously, mostly the Netherlands. What's -- how does that change, if the deal happens? If approved, how does change the strategy or the rationale, or the strategic rationale behind being in Europe?
Daniel Hajj Aboumrad
Well, that's exactly -- it's what we're evaluating. We're evaluating the terms and conditions for the transaction and we are going to take the decision on that time. I think it's difficult to answer all the questions at this moment, no? Of course, it makes -- yes?
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Walter Piecyk - BTIG, LLC, Research Division
And then Daniel, just a question on your AT&T relationship. I mean, they've sold some shares to keep their ownership under 10%. When I talked to Randall Stephenson about it, he mentioned that you guys are always in communication prior to action. And there were some reports on the press about them showing an interest in purchasing Telefonica. I'm trying understand, if you knew about the Telefonica, how exactly does that work? I mean, would they be coming in as a competitor? Or since, I guess, historically, you've had a close relationship, how do think regulators would even -- I'm just -- I guess, I'm just looking for a general kind of update on your relationship with AT&T, and why we're seeing a lot of recent activities that suggest that maybe you guys are going to be more competitive in each other's markets.
Daniel Hajj Aboumrad
What I can tell you about AT&T, I think, we have a very good relations with Randall. We have very good relations with John, with all group of AT&T. And they tell us about that they are going to sell their shares of América Móvil below 10%. When they take the decision to sell that, we don't know exactly what percentage of they want to do and what they want to do. But we are in communication with them. We don't know nothing about the Telefonica deal. It was -- I saw that in the news. We don't talk about those type of things, but we have a very good relation. They are very good partners. They help in some issues here in América Móvil and that's what we appreciate and that's what we do with them. So that's mainly what we have, no? We have around 20 years of relation with AT&T. They have been very good partners, and I hope that they stay for the next 20 years with us. So that's what I can tell you about AT&T.
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