8.8 C
New York
Sunday, March 3, 2024

How was Telmex privatized? This is how Carlos Slim bought it while Mexico was in crisis – El Financiero

The Mexican businessman Carlos Slim declared that Telmex, a company he owns, “is no longer a business”; However, it is not in her plans to sell it and she instructed her children not to abandon it in the future and to belong to the family.

Slim, who is the richest man in Mexico and Latin America, said that if anything, a part of Telmex could be sold to private parties, but not in its entirety, since it is a Mexican company and should remain that way.

Among the main reasons why Telmex is no longer profitable, according to the magnate, are its labor liabilities of more than 270 billion pesos for around 40 thousand pensioners, who in certain cases receive up to 160 percent of what they were. his last salary.

Another claim of Slim, who last year surpassed a fortune of 100 billion dollars, was that Telmex has been excluded to give dividends to their customers in the last 20 years, which is why they have not been able to provide pay television services or compete in the sector.

The crisis in Telmex has been going on for years, and for a decade it has been reporting red numbers. Carlos Slim, who has been at the helm for 33 years, said that it is possible that the company’s finances will heal by 2040.

How was Telmex privatized?

Telmex was a federal company, and in 1990 it was privatized with the sale to Carlos Slim, this at the hands of the government of Carlos Salinas de Gortari.

This is one of the most criticized decisions of his government, although for years he has justified it by saying that the trend in those years was privatization and the World Bank itself recognized the sale.

In a publication that Salinas de Gortari wrote exclusively for The financialsaid that “Slim did not inherit his fortune from Telmex, but rather took advantage of the lack of neoliberal regulation to consolidate himself in the emergence of a new sector, mobile telephony.”

This was the Telmex sale process and the economic situation of the country

Carlos Salinas de Gortari insists that with the sale of Telmex the State went from becoming “big” to become “strong”, this because with the privatization of companies it managed in the first instance to give priority to objectives such as Education and Health.

Telmex was a public company from 1972 to 1990, and although in its first years it had notable growth, data from the World Bank indicate that the company’s efficiency fell by 43 percent between 1981 and 1988. To this we must add that, derived from the economic crisis of 1982, the government of Mexico, then in transition by José López Portillo and Miguel de la Madrid, had to suspend payment of the external debt due to the economic situation it was going through.

The fiscal deficit was 15 percent of the Gross Domestic Product (GDP), so one of the priorities of the Carlos Salinas administration was to stabilize the economy and reduce the public deficit.

Although those were Salinas de Gortari’s reasons, millions of Mexicans resented the privatization of Telmex years later, This is due to price increases, as well as service failures. It should be remembered that one of the main demands was that the company was efficient before its sale and was able to continue its expansion.

In September 1999, the sale of Telmex was announced, and it was not until December 1990 that the envelopes with the businessmen’s offers were opened. Carlos Slim being the winner.

Before privatization, Telmex was worth 207 million dollars and after the announcement of the sale it reached 3.3 billion dollars.

The purchase of Carlos Slim on the Government’s participation in Telmex It would have been for 8,615 million dollars.

This was Carlos Slim’s assets before and after buying Telmex

Carlos Slim already had a large asset before purchasing Telmexand the purchase, for a price that many consider “low”, was essential to grow his fortune.

Former President Salinas de Gortari insists that what Carlos Slim did was take advantage of the “shock caused by the nationalization of the banks and the 1982 crisis in Mexico,” which allowed him buy several profitable companies, including Telmex.

In 1995 Carlos Slim’s fortune was 3.7 billion dollarsand by 2000 it was already approximately 10 billion.

Source link

Related Articles


Please enter your comment!
Please enter your name here

Stay Connected

- Advertisement -spot_img

Latest Articles