April 4, 2006

Verizon Communications agreed to sell its Caribbean and Latin American telecom operations to America Movil and a company jointly owned by America Movil and Telefonos de Mexico (Telmex).

Verizon is selling Verizon Dominica in the Dominican Republic, and also is selling its 52 percent interest in Telecomunicaciones de Puerto Rice (Puerto Rico Telephone) and its 28.5 percent stake in Compania Anonima Nacional Telefonos de Venezuela, or CANTV, Venezuela’s largest telecommunication company.

“Over the years, our investments in the Caribbean and Latin America have been a source of solid financial performance, but today they represent a small part of our revenue base that is less aligned with our core business focus and future growth,” said Verizon Chairman and Chief Operating Officer Ivan Seidenberg.

Seidenberg called the transactions “a natural step in the evolution of our growth.”

America Movil will buy the Dominican Republic operation for just over $2 billion and Verizon’s stake in Puerto Rico Telephone for about $940 million; the company expects the transactions to close this year.

An entity jointly owned by America Movil and Telmex will purchase the 28.5 percent CANTV interest.

The price has not been disclosed.

The three properties have about 17,000 employees total and a customer base of more than 15 million wireless, wireline and broadband customers.

According to Verizon, the transactions will not affect Verizon Business’ international operations.

Shares of CANTV’s American Depository Receipt jumped up more than seven percent in early trading after the news.

Source: RCR