Leading telecom carrier, AT&T Inc. (NYSE:T) has reportedly divested 250 million shares from its America Movil SAB de CV (ADR) (NYSE:AMX) stake, for $282 million. According to news reports, the divestiture is a regular sell-off, leaving AT&T with an approximate 9.1% stake in the Mexican telecom behemoth.
AT&T already sold 540 million shares of America Movil when the latter initiated its share buyback program earlier this year. The disinvestment helped AT&T secure about $564 million but reduced its holding by 7.5%.
However, despite a reduced holding, AT&T Inc. (NYSE:T) continues to form global alliances with America Movil SAB de CV (ADR) (NYSE:AMX) to expand in the emerging telecom markets. The company has entered into profitable deals with America Movil that ensure business expansion.
In Nov 2012, both these companies entered into a network sharing agreement. This partnership allows America Movil SAB de CV (ADR) (NYSE:AMX) to expand and enhance its network within Latin America and offshore key markets throughout the world, including growth regions like Asia and the Middle East.
Further, AT&T Inc. (NYSE:T) is looking at opportunities to improve its growth profile through a number of strategic initiatives in terms of product offering. The company plans to woo customers with early upgrades to smartphones and tablets every year. The program allows customers to get new phones without paying extra on downpayment, activation fee, upgrade or financing fee. New and existing customers due for an upgrade can avail this offer.
The carrier also started offering a new device upgrade service called AT&T Next that allows subscribers (both new and existing) to change their old smartphones or tablets every year without any upgrade fee or down payment. The company’s Mobile Share plan is also gaining popularity with already 16 million subscribers. Management intends to launch new high-tier plans in the coming quarters.
AT&T Inc. (NYSE:T) currently has a Zacks Rank #3 (Hold).
Disclaimer: This article is written by Zacks Equity Research and originally published at Zacks.com.