(Bloomberg) -- Shares of billionaire Carlos Slim’s America Movil SAB fell the most in more than eight months after President Andres Manuel Lopez Obrador suggested the company may have to make some compromises to complete the renewal process for the concession for its Telmex unit.
When asked about the renewal process Thursday, the president said he wouldn’t cancel a concession of Telmex’s size right before his term ends in 2024. Even so, he said he might ask Telmex to offer better prices or increase network coverage in remote areas.
“We can keep the concession looking for compromises that will benefit people whether in prices or by increasing the network so everyone has Internet,” Lopez Obrador said at his daily press conference. “We’re going to do what’s best for the country, we’re not going to be extremists.”
In 2016, Telmex requested and won an extension from the telecom regulator IFT for the government concession that allows it to operate. Now the company is required to submit a plan for the concession in 2023. America Movil declined to comment.
U.S.-traded shares fell as much as 3.9% for their biggest intraday drop since January. The shares pared declines but were still lower as of about 12:40 p.m. in New York.
Telmex and America Movil are one of the most regulated companies in Mexico after a 2013 telecommunications reform deemed the telecom giant a dominant market player.
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