Phone co. purchase.(PUERTO RICO)(mergers of America Movil and Puerto Rico Telephone Co.)(Brief article)

0 Comments | Caribbean Update, May, 2007

America Movil finalized the purchase of Puerto Rico Telephone (PRT), paying US$1.9 billion for the shares of the island's main telecom supplier, reports El Nuevo Dia (March 31, 2007). The deal includes the 52% shares of Verizon, 28% of the Govt. of Puerto Rico, the 13% of Banco Popular, and the 11% of the employees.

The conglomerate of Mexico's multi-millionaire Carlos Slim now has total control of PRT. In order to approve the sale, the U.S. Federal Communications Commission (FCC) required an investment of US$1 billion by America Movil over the next 5 years, in order to improve PRT technology and service. Alfredo Salazar, president of the Board of Directors of the Puerto Rico Telephone Authority, said that proceeds from the sale will go towards the Retirement System.