No white smoke will be lit and no one will shout the classic habemus papam. However, as of Tuesday we have the new… Pope of global wealth and oh my goodness, it is not the same Bill Gates.
The Microsoft co-founder had held the top spot on the relevant list of the richest people in the world since May 2013, but a few 24 hours ago he was surpassed by Mexican Carlos Slim Helu, thanks to the launch of the shares of telecommunications giant America Movil in the American and Mexican markets.
What exactly happened on Tuesday that saw a changing of the guard on the list? As Newmoney notes, the value of the telephone company, America Movil, increased by 1% or $805.6 million, raising Slim's fortune to $79.6 billion compared to $79.1 billion for Gates, according to Forbes estimates.
America Movil shares have been on a tear since the company announced last week plans to spin off some assets to comply with Mexican antitrust laws. The day after the spin-off was announced, the stock rose 10% on the NYSE.
The Mexican tycoon's decision to break up his empire, separating the operations to sell off his landline and other assets, was hailed by markets and analysts alike. The move shows Slim is determined to stay in the game and not allow government authorities to dictate how and when to reduce his share of the telephony market below 50%, as required by new legislation.
Slim's America Movil controls 70% of the mobile phone market in Mexico and 80% of the landline market.
From July 1 to July 11, Slim's fortune increased from $74.5 billion to $78.5 billion, a gain of $4 billion over ten days. Analysts estimate that if the gap between the two top super-rich continues to widen, the Mexican tycoon will once again take the lead in the race for billions.
Mexican President Enrique Pena Nieto signed the antitrust law at an event on Monday in the presence of top Mexican telecommunications executives, including Carlos Slim Domitt, Slim's eldest son and - in all likelihood - heir.
The Mexican tycoon was dethroned from the top of Forbes' billionaires list in May 2013 due to a sharp drop in America Movil's stock, which was triggered by fears that Mexico's new antitrust laws could cause the collapse of the telecommunications empire.
However, as it turned out, the threat only reactivated him. In fact, he plans to expand further into Europe and Latin America. As America Movil announced, it intends to increase its stake in Telecom Austria by 23.47%, bringing its participation in the company to 50.8%.
Source: iefimerida.gr
