Carlos Slim: A Telecom Tycoon in the Making
|
Code : LDS0003
|
Region : Mexico |
||||
 |
 |
 |
 OR |
||
|
GROWTH FROM THE SCRATCH Slim was born in Mexico in 1940 to a Lebanese immigrant. His sharp sense of business acumen was honed from the tender age of 11, when he made his first investment in a government savings bond. By the time he graduated from the National Autonomous University ofMexico in 1965, his investments had given him a net worth of $400,000.6 He had made enough money to invest in a soda bottling plant, a real estate firm and a construction company. With the incorporation of Inversora Bursatil, a brokerage house, Slimfounded his first group, Grupo Financiero Inbursa, inMexico, in 1965.... THE EMPIRE BUILDER By 1994, Slim’s personal fortunewas $4.4 billion.16However, his prized possession, Telmex, faced some problems. Firstly, the devaluation of the Mexican peso, which plummeted by 40%17 against the dollar, increased the debt of the company. In 1995, Telmex suffered losses of $65 million.18The same year, the Mexican government under Ernesto Zedillo Ponce de Leon,19 passed regulations, which allowed the foreign telephone companies likeAT&T and MCI to enter Mexico. It was also decided that there would be no concession fee and long distance companies could charge the customers whatever they desired. Such regulations made Telmex lose 5%20 on its stock.... |
|
| For Case Books
Click Here >> For Case eBooks Click Here >> |
|
