America Movil is pushing to sell some assets for at least $20 billion, a source told CNBC.
The Mexican telecom company, which is owned by billionaire Carlos Slim, is preparing to divest assets in an unprecedented step to cut its market share in Mexican telecoms below 50 percent and escape the burden of tougher regulations.
The company's stock rose after reports of its interest in selling some assets.
The source—someone familiar with the situation who declined to be identified—said that America Movil would be seeking to sell its assets for at least eight times earnings before interest, taxes, depreciation and amortization of $2.5 billion, which would imply a total of at least $20 billion.
The justification for the steep multiplier, the source said, is that Mexico has a growing telecommunications market, and whomever bought the assets would face a competitor—America Movil—firmly dedicated to not grow to more than 50 percent market share.
Mexican telecom reforms from last year instituted steep penalties for any firm that held a majority of the country's market—an effort to increase competition and foreign investment.
Correction: This article has been updated to reflect the sale price that America Movil is seeking.