Business Services Industry

GFS: Investment in XO will not affect Telmex share prices.

Internet Securities, September, 2002

MEXICO CITY, Sep 3, 2002 (Notimex/Corporate Mexico by Internet Securities, Inc. via COMTEX) -- Analyst Rogelio Urrutia said it would be negative if telephone company Telefonos de Mexico (Telmex) is forced to acquire a share in XO Communications Inc, although if this does happen it would not mean any significant impact on the stock price of the Mexican company. The specialist from Grupo Financiero Santander said that after the decision of a U.S. federal judge to approve the restructuring of XO, Telmex could be forced to fulfill an agreement, which would mean that it had to acquire a share of the company. The price to be paid for that share would be around US$400 million, but the telecommunications sector in the United States is going through difficult times and the lack...

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