Broadcaster Televisa jumps on reports of AT&T unit offer

Shares in Mexican broadcaster Televisa TLEVISACPO.MX climb 7% at mid-day after a local media report that the firm could be close to purchasing AT&T's local unit for between $3 billion and $4 billion

Columnist Dario Celis at newspaper El Heraldo de Mexico reported on Tuesday that Televisa's Izzi unit would make the bid, while investment firm Cerberus Capital Management was also in the running

"Acquiring AT&T's operations would give (Televisa) approximately 24 million mobile subscribers, equivalent to a market share of around 17%," analysts at GBM Insight say

"Even with this new scale, (Televisa) would have to make significant investments in spectrum and infrastructure to upgrade its network, in addition to all the advertising and marketing expenses required for a new brand to compete effectively against America Movil AMXB.MX," they add

Televisa tells Reuters that the firm is constantly analyzing deals and does not comment on processes underway

AT&T Mexico and Cerberus Capital do not immediately respond for comment