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Group will buy Mexico's phone company

Article Abstract:

The Mexican government will sell Telefonos de Mexico, the national telephone company, to a consortium made up of Grupo Carso SA, Southwestern Bell Corp, and France Telecom. The $1.76 billion deal signifies a willingness on the part of the Mexican government to open strategic industries to American business interests. The Mexican government plans to sell 20.4 percent of Telefonos de Mexico, which carries a majority of that company's voting rights. Grupo Carso will pay $859.6 million for 10.4 percent, satisfying a stipulation that Mexican individuals or companies control a majority of the winning consortium. France Telecom will pay $412.2 million for 5 percent, and Southwestern Bell will pay $485.8 million for another 5 percent, plus a 5 percent option. All seven regional Bell companies are investing money abroad. Critics suggest that they ought to spend more on digital switches and fiber-optic lines at home.

Telephone communications, exc. radio, Investments, Mexico, Telefonos de Mexico S.A. de C.V., Privatization (Business), Regional Bell Operating Companies, France Telecom S.A., Consortia, Bell Regional Holding Companies, Consortium, Privatization, Grupo Carso S.A., Southwestern Bell Telephone Co.

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3 Western Union units being sold; A.T.&T. in accord to pay $180 million in cash transaction

Article Abstract:

Western Union Corp will sell its telex, computer mail and computer data transmission services to AT&T, for $180 million. The deal raises cash for financially troubled Western Union and makes AT&T a leader in the market for sending messages between computers. This completes Western Union's transformation from a telecommunications company to a financial services and overnight mail business. Western Union already has divested four kinds of telephone service: long-distance, cellular, satellite and private leased lines. Western Union is trying to refinance its bonds and has warned that it might file for bankruptcy. The company will use proceeds from the AT&T deal to redeem part of a $635 million debt. Western Union's stock climbed, on Tue, Jul 3, 1990, closing at 62.5 cents a share on the New York Stock Exchange. The company's 'junk bonds' rose from $36 to $47 for each $100 of face value.

Office machines, not elsewhere classified, COMMUNICATION, Computer networks, Telecommunications industry, T, Email, American Telephone and Telegraph Co., Western Union Corp., E-Mail, Telecommunications, Financial Stability, WU

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