Telefónica sells to Slim in Guatemala and El Salvador

Spain's Telefónica has sold its affiliates in Guatemala and El Salvador to América Móvil, which is controlled by the Mexican magnate Carlos Slim.

The Spanish telecom is selling its two Central American offshoots for a total of $650 million. including capital gains of some $136 million.

The operation does not include the three other Central American affiliates of Telefónica -- in Costa Rica, Panama and Nicaragua -- which are expected to be sold fairly soon, assuming that an agreement can be reached with Millicom (known for its Tigo brand), though some sources believe that AT&T could be an alternative buyer.