The titles of the station added a drop of 7.45% in the last week. SPECIAL

• Experts predict a stage of litigation

The roles of the station closed the day with a decrease of 3.87% after making official denial of the merger with Iusacell

Mexico City (FEB/03/2012)-shares of Grupo Televisa in the Mexican stock market fell yesterday 3.87%, 50.90 pesos, its lowest price in the last four months, after which the Federal Competition Commission (CFC) decided not to authorize the purchase of 50% of the mobile telephone Iusacell.

Before that it oficializara the refusal of the CFC to the merger, the actions of the station amounted to a decrease of 7.45% in the last week.

In stock markets in New York, his roles dropped 2.89% to $18.81.

However, analysts don’t see the future of the company with the same pessimism that have been the holders of shares in the company.

“People gives you fear that you will lose one thousand $ 600 million but (…)” Televisa doesn’t live anything more than this fusion. “This merger was part of a strategy (…) but also has expansion plans in United States, the part of cable and satellite are going well,” said Gerardo Román, Actinver analyst.

Experts agreed that begins a process of litigation in an attempt to reverse the decision, that, after being notified by the CFC on its resolution, Televisa and Iusacell said will present resources to enable the authority to reconsider its decision.

“Maybe there was an assessment of other things that have to do with this operation,” said Eduardo Ruiz Vega, Iusacell regulatory compliance officer.

“So we will see the Commission (Federal jurisdiction) in brief, in times that makes the law that are 30 days to file an appeal for reconsideration”.    

The directors said that Iusacell has not considered selling the entire company Televisa should the Antimonopoly authority ratifies its rejection of the operation by 50% of the telephone.

Iusacell has only 4.5% of the mobile phone market, and business analysts warned that it would be “inevitable” that the phone will continue with its loss of market share.

However, average Telecom consulting commented that more severe problems will be for Televisa, since the investment had already been made and failed to enter the mobile phone.

In April of last year, Televisa announced its intention to acquire 50% of the shares of Iusacell, TV Azteca owned cellular phone company, per thousand US $ 600 million. The merger required approval of the CFC.

THE DATA

The size of the market

Iusacell has 4.5% of the mobile phone market, which means more than three million 700 thousand users, of which 68.6 per cent were prepaid. The signal from the phone company covers virtually all over the country.