The move happened on Tuesday when the value of Slim’s phone company América Móvil’s (NYSE:AMX), his largest holding, rose 1% or $805.6 million, pushing his net worth to Forbes estimate of $79.6 billion, against Gates’s estimated $79.1 billion net worth.
América Móvil’s stock has been rising since the company announced plans last week to divest some assets to comply with Mexico’s new antitrust telecom regulations. América Móvil’s shares were sharply higher last Wednesday, 24 hours after the news of the breakup. The company’s shares, which have languished the past year as a result of regulatory pressures in Mexico, jumped 10% on the NYSE the day following the breakup announcement.
Between July 1 and July 11, Slim’s wealth jumped from $74.5 billion to $79.6, a gain of $5.1 billion in 12 business days, an indication that investors are applauding Slim’s unexpected decision to reduce his phone market share below 50% as a new antitrust telecom law mandate comes into play. Investors seem to believe the outcome may actually be better for Slim’s business interests.
Currently, Slim’s América Móvil controls 70% of the mobile phone market in Mexico, and 80% of landlines.
Mexican President Enrique Peña Nieto signed the bill into law on Monday in an event attended by Mexico’s top telecom executives, including Carlos Slim Domitt, Slims Helús oldest son and heir apparent.
Slim fell from the top of the Forbes World’s Billionaire list in May 2013 largely due to a sharp drop in América Móvil’s stock, fueled by fears that Mexico’s new antitrust regulations would crumble his telecom empire.
Yet it appears as though the threat has reenergized him. Slim is planning to further expand his presence in Europe and Latin America. In a filing with the Mexican Stock Exchange on Monday, América Móvil said it will acquire an additional 23.47 % stake in Telekom Austria in a buyout offer, lifting the telecom giant’s interest in the company to 50.8%.
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| L-R: Bill Gates, Carlos Slim |
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