If you can't beat your enemy, join him. America Movil has chosen to follow Machiavelli's advice after first trying to prevent Telefónica from purchasing E-Plus, a German unit of the telecom KPN. Mexican billionaire Carlos Slim is now supporting the deal.
While the deal will cost a little more than expected (8.55 billion compared to a 8.1 billion forecast), it will make Telefónica the top communications company in Germany, which along with the Austrian market is especially attractive because of a high revenue per user level.
Another plus is that Telefónica will be able to still meet its debt obligations for the year and keep its credit rating flat.
