Shares in Mexico's Axtel rise as Flo Networks launches rival buyout bid
AXTL•Axtel shares rise after rival offer
** Shares in Mexican telecoms firm Axtel AXTELCPO.MX climb more than 5.5% after U.S.-based Flo Networks launches concurrent tender offers to acquire up to 100% of Axtel and its parent, Controladora Axtel CTAXTELA.MX, setting up a potential challenge to a rival bid backed by existing shareholders
** Controladora Axtel shares rise nearly 3%
** Flo did not disclose financial terms
** Flo says it received preliminary approval from the boards of both Axtel companies
** The move comes as a group linked to Axtel co-chairman Tomas Milmo and other shareholders is also pursuing an offer for the company, at equity value of about $632 million
** With the competing offer valuing Axtel certificates at 3.86 pesos ($0.2272) apiece, Flo's bid is expected to come in at a similar level, Scotiabank analysts say in a note
** "The Axtel acquisition would substantially increase (Flo's) presence across 90% of Mexico's industrial parks," Scotia adds
($1 = 16.9911 Mexican pesos)
