Private Investors to Control Mexico Telephone Firm
President Carlos Salinas de Gortari told telephone company workers Monday that Mexican investors will get majority control when the government sells most of its shares in the phone company.
The government owns a 56% stake in Telefonos de Mexico, known as Telmex, and will continue to regulate the industry after the sale, Salinas said. He has ordered details of phone company privatization plans to be released within a week.
In June, Telmex announced two alternatives for privatization in which the government would retain 25% of the company.
A rough draft of the government’s proposal for the company calls for 75% private ownership in order to double the system’s capacity within five years.
Salinas said expansion and strengthening of research and technology are his goals for the company, which the government has controlled for 16 years.
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