Should Mexican antitrust officials reject proposals put forward by mobile network operator Iusacell to accept an investment from local broadcast giant Grupo Televisa, the former may ‘disappear’, according to Francisco Borrego, chief legal counsel for Ricardo Salinas, who controls the cellco. Amid speculation that antitrust authority the Comision Federal de Competencia (Cofeco) may block Televisa’s planned USD1.6 billion investment in Iusacell, Bloomberg cites Mr Borrego as saying: ‘If Iusacell doesn’t receive a large investment, it will little by little lose its ability to pay its debts ... If they don’t attend to us, Iusacell could disappear.” As previously reported by CommsUpdate, in April 2011 Televisa announced that it had agreed to acquire a 50% stake in Iusacell; the media giant said it would pay around USD1.6 billion for the stake, subject to receiving regulatory approval for the deal, with USD1.57 billion paid for debt convertible into Iusacell equity in addition to a direct cash payment of USD37.5 million
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OVETEL Iusacell could ‘disappear’ if investment from Televisa is ruled out
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