Overview

• AT&T is working with financial advisers to explore the sale of its Mexican mobile business for about $2 billion, though it has made no final decision and calls the reports rumors.
• The potential divestment follows Telefónica’s talks to sell its Movistar unit and highlights a wider pullback by foreign carriers in Latin America.
• América Móvil’s shares jumped more than 5 percent on the Mexican stock exchange after news of AT&T’s possible exit.
• Despite investing over $10 billion since 2014, AT&T Mexico never secured significant share against the dominant Telcel.
• A sale would enable AT&T to reallocate resources into its U.S. fiber network and a converged home internet and mobile service strategy.