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What: Shares of NII Holdings (NASDAQOTH:NIHDQ) have skyrocketed today by as much as 25% on reports that the company may sell a business unit.
So what: Chilean phone company Entel is reportedly interesting in paying $500 million to purchase NII's Peru business unit. Local media outlet El Comercio reported the negotiations yesterday, sparking today's rally.
Now what: NII has been interested in selling businesses in different regions such as Peru, Chile, and Argentina, along with other assets, in order to turn its attention to core markets in Mexico and Brazil. Intense competition in Peru has led to declines in service revenue. In a Bloomberg report, Stifel Nicolaus analyst Chris King was quoted as estimating total gross proceeds from the three markets NII is considering selling at close to $1 billion.
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