Schedule 13D

-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IuzM8jKIDGwqKFN2qddzv6yS66hdqLMrP7yJ/z579WAt0nCKlqwrMCkfTDHapGwk SS9KsxY9QaOjTpulfk8VFw== 0001193125-08-137494.txt : 20080620 0001193125-08-137494.hdr.sgml : 20080620 20080620171247 ACCESSION NUMBER: 0001193125-08-137494 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 7 FILED AS OF DATE: 20080620 DATE AS OF CHANGE: 20080620 GROUP MEMBERS: AT&T INTERNATIONAL, INC. SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: TELEFONOS DE MEXICO S A B DE C V CENTRAL INDEX KEY: 0000866213 STANDARD INDUSTRIAL CLASSIFICATION: RADIO TELEPHONE COMMUNICATIONS [4812] IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: SC 13D SEC ACT: 1934 Act SEC FILE NUMBER: 005-60737 FILM NUMBER: 08910595 BUSINESS ADDRESS: STREET 1: PARQUE VIA 190-1016 COL. CITY: MEXICO CITY STATE: O5 ZIP: 06599 BUSINESS PHONE: 011525552225760 MAIL ADDRESS: STREET 1: PARQUE VIA 190-1016 CUAUHTEMOC CITY: MEXICO CITY STATE: O5 ZIP: 06599 FORMER COMPANY: FORMER CONFORMED NAME: TELEFONOS DE MEXICO S A DE C V DATE OF NAME CHANGE: 20000601 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: AT&T INC. CENTRAL INDEX KEY: 0000732717 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 431301883 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D BUSINESS ADDRESS: STREET 1: 175 E HOUSTON, RM 9-P-03 STREET 2: ATTN : SHARON HALL CITY: SAN ANTONIO STATE: TX ZIP: 78205 BUSINESS PHONE: 2108214105 MAIL ADDRESS: STREET 1: 175 E HOUSTON, RM 9-P-03 STREET 2: ATTN : SHARON HALL CITY: SAN ANTONIO STATE: TX ZIP: 78205 FORMER COMPANY: FORMER CONFORMED NAME: SBC COMMUNICATIONS INC DATE OF NAME CHANGE: 19950501 FORMER COMPANY: FORMER CONFORMED NAME: SOUTHWESTERN BELL CORP DATE OF NAME CHANGE: 19920703 SC 13D 1 dsc13d.htm SCHEDULE 13D Schedule 13D

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 13D

Under the Securities Exchange of 1934

(Amendment No. )*

Teléfonos de México, S.A.B. de C.V.

(Name of Issuer)

L Shares, without par value

A Shares, without par value

American Depositary Shares each representing 20 L Shares

American Depository Shares each representing 20 A Shares

(Title of Class of Securities)

No CUSIP for the L Shares

No CUSIP for the A Shares

The CUSIP for the American Depositary Shares representing L Shares is 879403780

The CUSIP for the American Depositary Shares representing A Shares is 879403400

(CUSIP Number)

Wayne Wirtz, Esq.

AT&T Inc.

175 E. Houston

San Antonio, Texas 78205-2233

Telephone Number: 210-351-3736

Wayne Wirtz, Esq.

AT&T International, Inc.

175 E. Houston

San Antonio, Texas 78205-2233

Telephone Number: 210-351-3736

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

June 20, 2008

(Date of Event which Requires Filing of this Statement)

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. ¨

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §240.13d-7 for other parties to whom copies are to be sent.

The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

SCHEDULE 13D

CUSIP No. None for the L Shares

None for the A Shares

The CUSIP for the American

Depositary Shares representing L

Shares is 879403780

The CUSIP for the American

Depositary Shares representing A

Shares is 879403400

Page 2 of 38 Pages


1	NAME OF REPORTING PERSONS. AT&T Inc. (formerly known as SBC Communications Inc.)
2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) ¨ (b) x
3	SEC USE ONLY
4	SOURCE OF FUNDS (SEE INSTRUCTIONS) OO
5	CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)	¨
6	CITIZENSHIP OR PLACE OF ORGANIZATION Delaware


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH		7 SOLE VOTING POWER 0
		8 SHARED VOTING POWER 0 A Shares and 1,799,453,534 L Shares¹
		9 SOLE DISPOSITIVE POWER 0
		10 SHARED DISPOSITIVE POWER 0 A Shares and 1,799,453,534 L Shares¹


11	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 0 A Shares and 1,799,453,534 L Shares²
12	CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)	x
13	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.0% of A Shares and 14.76% of L Shares³
14	TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) HC

To the extent that AT&T is considered to be a group with Carso Global Telecom, S.A. de C.V., a sociedad anonima de capital variable organized under the laws of the United Mexican States (“CGT”), AT&T believes (based on its knowledge derived from the Slim 13D) that it may be deemed to have Shared Voting Power and Shared Dispositive Power of up to approximately 2,523,332,176 additional L Shares (based upon an estimate of the maximum number of AA Shares (which are not registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) owned by CGT that may be converted into L Shares in accordance with the restrictions described in Item 4 of this 13D assuming all AA Shares owned by AT&T are converted into L Shares (AT&T would also, in that case, be deemed to have Shared Voting Power and Shared Dispositive Power of additional AA Shares owned by CGT which would not be convertible into L Shares in accordance with the restrictions described in Item 4 of this 13D). The maximum number of AA Shares convertible into L Shares is based upon (i) 10,393,514,176 L Shares outstanding as of June 18, 2008 as reported by the Mexican Stock Exchange, (ii) 8,114,596,082 AA Shares outstanding as of June 18, 2008, as reported by the Mexican Stock Exchange and (iii) 424,174,102 A Shares outstanding as of June 18, 2008 as reported by the Mexican Stock Exchange.

To the extent that AT&T is considered to be a group with CGT, AT&T believes (based on its knowledge derived from the Slim 13D) that it may be deemed to have beneficial ownership of up to an additional 7,252,832,176 L Shares and 91,994,660 A Shares, although these numbers may be greater, based upon the maximum number of AA Shares owned by CGT that may be converted into L Shares in accordance with the restrictions described in Item 4 of this 13D assuming all AA Shares owned by AT&T are converted into L Shares (AT&T would also, in that case, be deemed to have beneficial ownership of additional AA Shares owned by CGT which would not be convertible into L Shares in accordance with the restrictions described in Item 4 of this 13D). The maximum number of AA Shares convertible into L Shares is based upon (i) 10,393,514,176 L Shares outstanding as of June 18, 2008 as reported by the Mexican Stock Exchange, (ii) 8,114,596,082 AA Shares outstanding as of June 18, 2008, as reported by the Mexican Stock Exchange and (iii) 424,174,102 A Shares outstanding as of June 18, 2008 as reported by the Mexican Stock Exchange. To the extent CGT may be considered as part of a group with members other than AT&T and AT&TI, AT&T may be deemed to have beneficial ownership of L Shares, AA Shares and A Shares in excess of the amounts reflected in this footnote (see Slim 13D for additional details).

To the extent that AT&T is considered to be a group with CGT, AT&T believes (based on its knowledge derived from the Slim 13D) that it may be deemed to have beneficial ownership of up to 61.14% of the outstanding L Shares, based upon the maximum number of AA Shares owned by CGT that may be converted into L Shares in accordance with the restrictions set forth in Item 4 of this 13D assuming all AA Shares owned by AT&T are converted into L Shares and up to 21.69% of the outstanding A Shares. The percentage of A Shares and L Shares beneficially owned by AT&T and the maximum number of AA Shares convertible into L Shares is based upon (i) 10,393,514,176 L Shares outstanding as of June 18, 2008 as reported by the Mexican Stock Exchange, (ii) 8,114,596,082 AA Shares outstanding as of June 18, 2008, as reported by the Mexican Stock Exchange and (iii) 424,174,102 A Shares outstanding as of June 18, 2008 as reported by the Mexican Stock Exchange. To the extent CGT may be considered as part of a group with members other than AT&T and AT&TI, AT&T may be deemed to have beneficial ownership of L Shares, AA Shares and A Shares in excess of the amounts reflected in this footnote (see Slim 13D for additional details).

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SCHEDULE 13D

CUSIP No. None for the L Shares

None for the A Shares

The CUSIP for the American

Depositary Shares representing L

Shares is 879403780

The CUSIP for the American

Depositary Shares representing A

Shares is 879403400

Page 3 of 38 Pages


1	NAME OF REPORTING PERSONS. AT&T International, Inc. (formerly known as SBC International Inc.)
2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) ¨ (b) x
3	SEC USE ONLY
4	SOURCE OF FUNDS (SEE INSTRUCTIONS) OO
5	CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)	¨
6	CITIZENSHIP OR PLACE OF ORGANIZATION Delaware


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH		7 SOLE VOTING POWER 0
		8 SHARED VOTING POWER 0 A Shares and 1,799,453,534 L Shares⁴
		9 SOLE DISPOSITIVE POWER 0
		10 SHARED DISPOSITIVE POWER 0 A Shares and 1,799,453,534 L Shares⁴


11	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 0 A Shares and 1,799,453,534 L Shares⁵
12	CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)	x
13	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.0% of A Shares and 14.76% of L Shares⁶
14	TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) CO

⁴

To the extent that AT&TI is considered to be a group with CGT, AT&TI believes (based on its knowledge derived from the Slim 13D (as defined herein)) that it may be deemed to have Shared Voting Power and Shared Dispositive Power of up to approximately 2,523,332,176 additional L Shares (based upon an estimate of the maximum number of AA Shares (which are not registered under Section 12 of the Exchange Act) owned by CGT that may be converted into L Shares in accordance with the restrictions described in Item 4 of this 13D assuming all AA Shares owned by AT&TI are converted into L Shares (AT&TI would also, in that case, be deemed to have Shared Voting Power and Shared Dispositive Power of additional AA Shares owned by CGT which would not be convertible into L Shares in accordance with the restrictions described in Item 4 of this 13D). The maximum number of AA Shares convertible into L Shares is based upon (i) 10,393,514,176 L Shares outstanding as of June 18, 2008 as reported by the Mexican Stock Exchange, (ii) 8,114,596,082 AA Shares outstanding as of June 18, 2008, as reported by the Mexican Stock Exchange and (iii) 424,174,102 A Shares outstanding as of June 18, 2008 as reported by the Mexican Stock Exchange.

⁵

To the extent that AT&TI is considered to be a group with CGT, AT&TI believes (based on its knowledge derived from the Slim 13D) that it may be deemed to have beneficial ownership of up to an additional 7,252,832,176 L Shares and 91,994,660 A Shares, although these numbers may be greater, based upon the maximum number of AA Shares owned by CGT that may be converted into L Shares in accordance with the restrictions described in Item 4 of this 13D assuming all AA Shares owned by AT&TI are converted into L Shares (AT&TI would also, in that case, be deemed to have beneficial ownership of additional AA Shares owned by CGT which would not be convertible into L Shares in accordance with the restrictions described in Item 4 of this 13D). The maximum number of AA Shares convertible into L Shares is based upon (i) 10,393,514,176 L Shares outstanding as of June 18, 2008 as reported by the Mexican Stock Exchange, (ii) 8,114,596,082 AA Shares outstanding as of June 18, 2008, as reported by the Mexican Stock Exchange and (iii) 424,174,102 A Shares outstanding as of June 18, 2008 as reported by the Mexican Stock Exchange. To the extent CGT may be considered as part of a group with members other than AT&T and AT&TI, AT&TI may be deemed to have beneficial ownership of L Shares, AA Shares and A Shares in excess of the amounts reflected in this footnote (see Slim 13D for additional details).

⁶

To the extent that AT&TI is considered to be a group with CGT, AT&TI believes (based on its knowledge derived from the Slim 13D) that it may be deemed to have beneficial ownership of up to 61.14% of the outstanding L Shares, based upon an estimate of the maximum number of AA Shares owned by CGT that may be converted into L Shares in accordance with the restrictions set forth in Item 4 of this 13D assuming all AA Shares owned by AT&TI are converted into L Shares and up to 21.69% of the outstanding A Shares. The percentage of A Shares and L Shares beneficially owned by AT&TI and the maximum number of AA Shares convertible into L Shares is based upon (i) 10,393,514,176 L Shares outstanding as of June 18, 2008 as reported by the Mexican Stock Exchange, (ii) 8,114,596,082 AA Shares outstanding as of June 18, 2008, as reported by the Mexican Stock Exchange and (iii) 424,174,102 A Shares outstanding as of June 18, 2008 as reported by the Mexican Stock Exchange. To the extent CGT may be considered as part of a group with members other than AT&T and AT&TI, AT&TI may be deemed to have beneficial ownership of L Shares, AA Shares and A Shares in excess of the amounts reflected in this footnote (see Slim 13D for additional details).

-3-

This statement on Schedule 13D (this “13D”) is being filed to amend the statement on Schedule 13G of AT&T Inc. (“AT&T”) and AT&T International, Inc. (“AT&TI”) filed on February 14, 1992 (as amended on February 15, 1995, March 28, 2001 and February 12, 2007) relating to the L Shares (as defined below). AT&T and AT&TI (the “Reporting Persons”) have concluded that the arrangements contained in the Shareholders Agreement (the “Shareholders Agreement”), dated December 20, 2000, between CGT, and AT&TI and the Trust Agreement (the “Trust Agreement” and, together with the Shareholders Agreement, the “Telmex Agreements”), dated March 28, 2001, between CGT and AT&TI may result in their being treated as a group with CGT. To the knowledge of the Reporting Persons, CGT may be deemed to be controlled by Carlos Slim Helú, Carlos Slim Domit, Marco Antonio Slim Domit, Patrick Slim Domit, Maria Soumaya Slim Domit, Vanessa Paola Slim Domit and Johanna Monique Slim Domit (collectively, the “Slim Family”) and as a result CGT may be considered to be part of a group with the members other than AT&T and AT&TI (see the Schedule 13D filed by the Slim Family on February 6, 1998, as amended through June 19, 2008 (the “Slim 13D”) for additional details).

Item 1.

Security and Issuer.

This 13D relates to the Series L Shares, without par value (the “L Shares”) and Series A Shares, without par value (the “A Shares”), of Teléfonos de México, S.A.B. de C.V. (the “Issuer”) . The address of the principal executive offices of the Issuer is Parquet Via 190, Colonia Cuaulitémoc, 06599 México, D.F., México.

Item 2.

Identity and Background.

(a) and (b)

AT&T is a Delaware corporation, with its principal office and principal place of business at 175 E. Houston, San Antonio, Texas 78205-2233. Other than executive officers and directors, there are no persons or corporations controlling or ultimately in control of AT&T. AT&T is among the largest providers of telecommunications services in the United States and the world. AT&T offers services and products to consumers in the U.S. and services and products to businesses and other providers of telecommunications services worldwide. The services and products that AT&T offers vary by market, and include: local exchange services, wireless communications, long-distance services, data/broadband and Internet services, telecommunications equipment, managed networking, wholesale services and directory advertising and publishing. AT&T does not directly hold any securities of the Issuer.

AT&TI is a Delaware corporation and wholly-owned subsidiary of AT&T, with its principal office and principal place of business at 175 E. Houston, San Antonio, Texas 78205-2233. Other than executive officers and directors and AT&T, there are no persons or corporations controlling or ultimately in control of AT&TI. AT&TI is engaged primarily in the holding of international assets in the telecommunications business.

(c) Per Instruction C, the name, business address, and principal occupation (including the name, address and principal business of the employer) of each executive officer and director of the Reporting Persons are set forth in Exhibit I hereto and incorporated herein by reference.

(d) During the last five years, none of the Reporting Persons, nor, to the best of their knowledge, any of their directors or executive officers has been convicted in any criminal proceeding (excluding traffic violations or similar misdemeanors).

(e) During the last five years, none of the Reporting Persons, nor, to the best of their knowledge, any of their executive officers or directors has been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction resulting in a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, Federal or State securities laws, or finding any violation with respect to such laws, and which judgment, decree or final order was not subsequently vacated.

(f) The Reporting Persons are incorporated in the State of Delaware. Each executive officer and director of the Reporting Persons is a citizen of the United States.

Item 3.

Source and Amount of Funds or Other Consideration.

The Reporting Persons initially acquired the AA Shares for cash on February 13, 1992.

-4-

Item 4.

Purpose of Transaction.

The Reporting Persons’ shares in the Issuer were acquired for the purpose of investment, although the group that the Reporting Persons may be deemed to be a part of may be deemed to have acquired their shares for other purposes based on the purpose for which Carlos Slim Helú, Carlos Slim Domit, Marco Antonio Slim Domit, Patrick Slim Domit, Maria Soumaya Slim Domit, Vanessa Paola Slim Domit and Johanna Monique Slim Domit (collectively, the “Slim Family”) and the Mexican Trust that holds AA Shares and L Shares for which the Slim Family is a beneficiary (the “Control Trust”) acquired its shares and such group may be deemed to control the Issuer. On December 20, 2000, CGT and AT&TI entered into the Shareholders Agreement, and on March 28, 2001, CGT and AT&TI established a trust by entering into a Trust Agreement, which govern the ownership and voting of any and all future AA Shares owned by such parties.

Under the terms of the Telmex Agreements, each of CGT and AT&TI agreed to vote its AA Shares in favor of 13 members nominated by CGT to the board of directors of the Issuer (the “Board”) and four members nominated by AT&TI to the Board (or in similar proportion if the holders of AA Shares are unable to elect 17 members of the Board); provided that upon the reduction of the number of members of the Board to 13, AT&TI shall only be entitled to nominate two members to the Board. The Board will not consider or vote on any specified matter to be reviewed by the executive committee of the Issuer (the “Executive Committee”) unless the Executive Committee has made a recommendation to the Board with respect to such matter, subject to certain exceptions. The Executive Committee consists of four members, three of whom shall be appointed by CGT and one of whom shall be appointed by AT&TI. CGT and AT&TI have agreed to cause the Executive Committee to use their best efforts to mutually agree upon all matters presented to the Executive Committee, and to follow certain procedures in the event they are unable to do so. With the exception of the appointment of members to the Board and the Executive Committee, under the terms of the Telmex Agreements, CGT has the power to direct the voting of the AA Shares held by AT&TI.

In addition, under the Telmex Agreements each of AT&TI and CGT has granted to the other a right of first offer on any proposed transfer of AA Shares held by such party, except for transfers to certain affiliates. Upon the receipt of a notice of proposed transfer, the party receiving the notice shall have 30 calendar days to decide whether it wishes to purchase all (but not less than all) of the AA Shares proposed to be sold by the notifying party; provided that if AT&TI is prohibited by Mexican law from acquiring the AA Shares proposed to be sold by CGT, AT&TI may exercise its right to purchase through a third party, trust or other legal entity legally allowed to hold AA Shares. In the event the receiving party elects not to purchase the AA Shares offered for sale or is otherwise unable to complete the purchase of such AA Shares in accordance with the Shareholders Agreement, the notifying party shall have 180 days within which to sell such AA Shares, to a third party at the same price offered to the receiving party; provided, that the purchasing third party shall have agreed in advance to be governed by a shareholders agreement on substantially the same terms as provided for in the Telmex Agreements. In addition to the right of first offer described above, each of CGT and AT&TI has granted to the other certain drag along rights, which require AT&TI to sell its interest. Should CGT transfer its AA Shares to a third party so that it no longer directly or indirectly owns the majority of the AA Shares, AT&TI shall have a tag along right which will permit AT&TI, in its discretion, to sell to the third party buyer the same portion of AA Shares as CGT is selling. Notwithstanding any of the foregoing, either party to the Telmex Agreements is free to convert any AA Shares held by such party into L Shares and transfer such L Shares to a third party without complying with the right of first offer and drag along right described above.

The current term of the Shareholders Agreement ends on December 20, 2009. The Shareholders Agreement provides that at the end of its term it shall be automatically renewed for two years unless either party has provided notice at least six months prior to the end of its term that it is terminating the Shareholders Agreement at the end of its current term. During the term of the Shareholders Agreement, the Shareholders Agreement may be terminated upon the mutual agreement of AT&TI and CGT. Additionally, the Shareholders Agreement shall terminate in the event of any of the following: (i) dissolution and liquidation of the Issuer, (ii) material breach by one of the parties or (iii) the conversion by any of the parties of all its AA Shares into L Shares, or in certain other instances as set forth therein.

-5-

The current term of the Trust Agreement ends on March 28, 2031. The Trust Agreement provides that at the end of its term the assets of the trust may be transferred to another trust within a determined trustee institution, with purposes similar to those provided in the Trust Agreement. If at the end of the term of the Trust Agreement no instructions have been provided with respect to the transfer of the assets of the trust, or with respect to the sale, transfer or conversion of the AA Shares that remain part of the trust, then all the AA Shares still part of the trust shall be sold on the Bolsa Mexicana de Valores, S.A. de C.V. and the net amount of the proceeds shall be given to AT&TI, as the beneficiary. The Trust Agreement may be terminated upon written request of AT&TI if Banco Inbursa, S.A., Division Fiduciaria (the “Trustee”) transfers ownership of the assets of the trust in any of the following forms: (a) delivering all of the AA Shares to AT&TI when AT&TI so requests; (b) transferring all of the AA Shares to any other person appointed by AT&TI; (c) selling, assigning or alienating all of the AA Shares in a form determined by AT&TI; or (d) converting all of the AA Shares in the form determined by AT&TI into another series of shares established under the Issuer’s bylaws.

The foregoing description is qualified in its entirety by the Telmex Agreements, which are referenced in Item 7 of this 13D and incorporated in this Item 4 by reference.

Through its direct ownership of AA Shares, the Telmex Agreements and Mexican Law, AT&TI may be deemed to be part of a group with CGT. To the knowledge of the Reporting Persons based on the Slim 13D:

(i)

CGT is a sociedad anonima bursátil de capital variable organized under the laws of Mexico. CGT is a holding company with interests in the Issuer and other telecommunications companies;

(ii)

Information regarding the executive officers and directors of CGT are set forth in Exhibit VI attached hereto; and

(iii)

None of the executive officers and directors of CGT listed in Exhibit VI hereto have, during the last five years, been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, Federal or State securities laws or finding any violation with respect to such laws.

In addition, under the Issuer’s bylaws, AT&TI, as a non-Mexican investor, is required to hold its AA Shares in a trust that requires the trustee to vote the AA Shares held in trust in the same manner as the majority of AA Shares. Furthermore, the Issuer’s bylaws prohibit a non-Mexican investor form holding a majority of the outstanding AA Shares.

Under the Issuer’s bylaws, AA Shares and A Shares have full voting rights and L Shares have limited voting rights. Each L Share is convertible at the holder’s option into one AA Share, and each AA Share and each A Share is convertible at the holder’s option into one L Share, in each case subject to restrictions under the Issuer’s by-laws, which are summarized in the table below.


Class of Issuer’s Capital Stock	% of Issuer’s Outstanding Capital Stock	% of Combined Number of Outstanding AA Shares and A Shares
A Shares	No more than 19.6%	No more than 49%
AA Shares	At least 20% but no more than 51%	No less than 51%
Combined AA Shares and A Shares	No more than 51%
Combined A Shares and L Shares	No more than 80%

Except as set forth in this 13D, including as described in the paragraph below, none of the Reporting Persons currently has plans or proposals which relate to or which would result in any of the actions or transactions described in paragraphs (a) through (j) of Item 4 of the instructions to Schedule 13D.

-6-

The Reporting Persons, like the Issuer, are engaged in the telecommunications business, although generally in different parts of the world. As a result, the Reporting Persons, the Issuer, persons with ownership interests in CGT and their affiliates and other persons with interests in the Issuer regularly discuss the businesses of the Issuer and the Reporting Persons and commercial and joint business transactions that may be of mutual interest. In addition, from time to time the Reporting Persons assess their position relative to the Issuer and depending on market conditions, the Issuer’s financial condition, business, operations and prospects and other factors, may change their plans or intentions and take any and all actions they may deem appropriate to their business interests or to maximizing the value of their investment, including, but not limited to, (i) proposing and discussing transactions involving the Issuer (including, but not limited to, joint ventures and/or other commercial arrangements with the Issuer and any other arrangements which may relate to the control of all or part of the Issuer and its businesses), (ii) acquiring or disposing of securities of the Issuer, or (iii) otherwise making a plan or proposal, with respect to any of the foregoing. The Reporting Persons reserve the right to formulate other plans or proposals regarding the Issuer or any of its securities and to carry out any of the actions or transactions described in paragraphs (a) through (j) of Item 4 of the instructions to this 13D, to the extent deemed advisable by the Reporting Persons.

The group that the Reporting Persons may form a part of may have other plans and purposes from time to time of which the Reporting Persons may have no knowledge.

The Reporting Persons do not expect to amend this 13D with respect to any plans or proposal relating to any of the foregoing until such time (if ever) as those plans or proposals become definitive enough to warrant disclosure.

Information contained in this 13D with respect to the intentions and ownerships of CGT and, to the extent the Reporting Persons are considered to be in a group with CGT, the amount of additional L Shares and A Shares the Reporting Persons may be deemed to have beneficial ownership, shared voting power or shared dispositive power as a result of such group is based upon the knowledge of the Reporting Persons derived from the Slim 13D.

Item 5.

Interest in Securities of the Issuer.

(a) The Reporting Persons have the following beneficial ownership of A Shares (including A Shares ADS) and L Shares (including L Shares ADS):


	Number of A Shares	% of Class	Number of L Shares	% of Class
AT&T	0 (see footnote 2)	0.0%	1,799,453,534 (see footnote 2)	14.73% (see footnote 3)
AT&TI	0 (see footnote 5)	0.0%	1,799,453,534 (see footnote 5)	14.73% (see footnote 6)
To the knowledge of the Reporting Persons, the executive officers and directors of the Reporting Persons have no beneficial ownership of A Shares or L Shares separate from the beneficial ownership held by the Reporting Persons.
In the event that CGT is deemed to be part of a group with the Reporting Persons, to the knowledge of the Reporting Persons, CGT has the following beneficial ownership of A Shares (including A Shares ADS) and L Shares (including L Shares ADS):
	Number of A Shares	% of Class	Number of L Shares	% of Class
CGT⁽⁷⁾	91,994,660	21.69%	9,032,956,628	60.63%

(b) The Reporting Persons and, to the knowledge of the Reporting Persons, CGT has the sole power to vote or direct the vote, shared power to vote or to direct the vote, the sole power to dispose or direct the disposition and the shared power to dispose or direct the disposition of the following A Shares (including A Shares ADS):

⁷	For additional information see Slim 13D.

-7-


	Sole Power to Vote or Direct the Vote	Shared Power to Vote or Direct the Vote	Sole Power to Dispose or Direct the Disposition	Shared Power to Dispose or Direct the Disposition
AT&T	0	0	0	0
AT&TI	0	0	0	0
CGT⁽⁷⁾		91,994,660		91,994,660
The Reporting Persons and, to the knowledge of the Reporting Persons, CGT has the sole power to vote or direct the vote, shared power to vote or to direct the vote, the sole power to dispose or direct the disposition and the shared power to dispose or direct the disposition of the following L Shares (including L Shares ADS):

	Sole Power to Vote or Direct the Vote	Shared Power to Vote or Direct the Vote	Sole Power to Dispose or Direct the Disposition	Shared Power to Dispose or Direct the Disposition
AT&T	0	1,799,453,534 (see footnote 1)	0	1,799,453,534 (see footnote 1)
AT&TI	0	1,799,453,534 (see footnote 4)	0	1,799,453,534 (see footnote 4)
CGT⁽⁷⁾		9,032,956,628		9,032,956,628

CGT is described in Item 4 hereto and incorporated herein by reference.

(c) Exhibit II sets forth any transactions in A Shares, L Shares, A Share ADS and L Share ADS effecting during the past sixty days by the Reporting Persons.

(d) Not Applicable.

(e) Not Applicable.

Item 6.

Contracts, Arrangements, Understandings or Relations With Respect to Securities of the Issuer.

CGT has entered into Forward Share Purchase Transactions pursuant to which it is obligated to buy L Shares (in the form of L Shares ADSs) from a counterparty on the terms specified below. The L Shares that are the subject of each contract listed below were sold to the counterparty at the inception of such contract, but for the purposes of this 13D are treated as beneficially owned by CGT. During the time that the shares are held by the counterparty, CGT pays interest to the counterparty on an amount equal to the total purchase price.


Counterparty	Expiration Date	Number of L Shares	Purchase Price per L Share	Interest Rate
Dresdner Bank A.G.	March 27, 2008	135,318,000	$ .7390	LIBOR + 0.875%
JP Morgan Chase Bank, N.A.	August 11, 2010	256,986,840	$ .7785	LIBOR + 0.625%
BBVA Bancomer, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA Bancomer, S.A. de C.V.	May 18, 2011	97,943,200	$1.0210	LIBOR + 0.250%
BBVA Bancomer, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA Bancomer, S.A. de C.V.	May 18, 2011	181,323,680	$1.1030	LIBOR + 0.250%
Santander Central Hispano Benelux S.A. de N.V.	September 13, 2011	83,091,000	$1.2035	LIBOR + 0.20%

-8-


Counterparty	Expiration Date	Number of L Shares	Purchase Price per L Share	Interest Rate
Wachovia Bank National Association	September 14, 2011	83,091,000	$1.2035	LIBOR + 0.25%
Santander Central Hispano Benelux S.A. de N.V.	October 17, 2011	74,019,260	$1.3510	LIBOR + 0.20%
Santander Central Hispano Benelux S.A. de N.V.	December 7, 2011	149,031,300	$1.3420	LIBOR + 0.20%
Santander Central Hispano Benelux S.A. de N.V.	December 19, 2011	144,613,160	$1.3830	LIBOR + 0.20%
BNP Paribas, S.A.	December 19, 2011	71,864,900	$1.3915	LIBOR + 0.20%
BBVA Bancomer, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA Bancomer, S.A. de C.V.	February 17, 2012	193,361,280	$1.5510	LIBOR + 0.250%
Santander Central Hispano Benelux S.A. de N.V.	April 18, 2012	56,069,540	$1.7835	LIBOR + 0.20%
Santander Central Hispano Benelux S.A. de N.V.	May 14, 2012	54,127,200	$1.8475	LIBOR + 0.20%
BBVA Bancomer, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA Bancomer, S.A. de C.V.	May 17, 2012	114,351,060	$1.7490	LIBOR + 0.25%
BBVA Bancomer, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA Bancomer, S.A. de C.V.	August 17, 2012	121,175,420	$1.6505	LIBOR + 0.25%

The foregoing description is based entirely on the Slim 13D. The Reporting Persons believe (based on discussions with representatives of the Slim Family) that the terms of the Forward Share Purchase Transactions will be adjusted to reflect the Spin-Off.

Other than as disclosed in Item 4 of this 13D, there are no other contracts, arrangements, understandings or relationships (legal or otherwise) between the Reporting Persons and any other persons with respect to securities of the Issuer.

Item 7.

Materials to be Filed as Exhibits.


Exhibit		Description
I		Directors and Officers of the Reporting Persons

II		Transactions in A Shares, L Shares, A Shares ADS and L Shares ADS

III		Shareholders Agreement, dated as of December 20, 2000, between CGT and AT&TI (formerly known as SBC International, Inc.)

IV		Trust Agreement, dated as of March 28, 2001, among Banco International, S.A., Banco Inbursa, AT&TI (formerly known as SBC International, Inc.) and CGT (Original, Spanish version)

V		Trust Agreement, dated as of March 28, 2001, among Banco International, S.A., Banco Inbursa, AT&TI (formerly known as SBC International, Inc.) and CGT (English Version)

VI		Directors and Officers of CGT

-9-

SIGNATURES

After reasonable inquiry and to the best of our knowledge and belief, the undersigned certify that the information set forth in this 13D is true, complete and correct.

Dated: June 20, 2008


AT&T Inc.

By:		/s/ Jonathan P. Klug
Name:		Jonathan P. Klug
Title:		Senior Vice President and Treasurer

AT&T International, Inc.

By:		/s/ Jonathan P. Klug
Name:		Jonathan P. Klug
Title:		Vice President and Treasurer

EX-99.(I) 2 dex99i.htm DIRECTORS AND OFFICERS OF THE REPORTING PERSONS Directors and Officers of the Reporting Persons

Exhibit I

DIRECTORS AND OFFICERS OF THE REPORTING PERSONS

AT&T


Name of Director	Business Address	Principal Occupation	Name, Address and Principal Business of Employer
Randall L. Stephenson	175 E. Houston San Antonio, Texas 78205-2233	Chairman of the Board, Chief Executive Officer and President of AT&T Inc.	AT&T Inc. 175 E. Houston San Antonio, Texas 78205-2233

William F. Aldinger III	175 E. Houston San Antonio, Texas 78205-2233	President and Chief Executive Officer of Capmark Financial Group Inc.	Capmark Financial Group Inc. 411 Borel Avenue, Suite 320 San Mateo, California Capmark Financial Group Inc. is a commercial real estate finance company.

Gilbert F. Amelio	175 E. Houston San Antonio, Texas 78205-2233	Chairman and Chief Executive Officer of Jazz Technologies, Inc.	Jazz Technologies, Inc. 4321 Jamboree Road Newport Beach, California Jazz Technologies, Inc. is the parent company of Jazz Semiconductor, Inc., an independent semiconductor wafer foundry.

Reuben V. Anderson	175 E. Houston San Antonio, Texas 78205-2233	Senior partner in the law firm of Phelps Dunbar, LLP	Phelps Dunbar, LLP Canal Place 365 Canal Street, Suite 2000 New Orleans, Louisiana 70130-6534 Phelps Dunbar, LLP is a law firm.

James H. Blanchard	175 E. Houston San Antonio, Texas 78205-2233	Retired Chairman of the Board and Chief Executive Officer of Synovus Financial Corp.	Not Applicable

August A. Busch III	175 E. Houston San Antonio, Texas 78205-2233	Retired Chairman of the Board of Anheuser-Busch Companies, Inc.	Not Applicable

James P. Kelly	175 E. Houston San Antonio, Texas 78205-2233	Retired Chairman of the Board and Chief Executive Officer of United Parcel Service, Inc.	Not Applicable

Jon C. Madonna	175 E. Houston San Antonio, Texas 78205-2233	Retired Chairman and Chief Executive Officer of KPMG LLP.	Not Applicable

Lynn M. Martin	175 E. Houston San Antonio, Texas 78205-2233	President of The Martin Hall Group, LLC	The Martin Hall Group, LLC 3750 N. Lake Shore Drive, Unit 10A, Chicago, Illinois 60613 The Martin Hall Group, LLC is a human resources consulting firm.

John B. McCoy	175 E. Houston San Antonio, Texas 78205-2233	Retired Chairman of Bank One Corporation	Not Applicable

Mary S. Metz	175 E. Houston San Antonio, Texas 78205-2233	Chair Emerita of the Board of Trustees of American Conservatory Theater	Not Applicable

Joyce M. Roché	175 E. Houston San Antonio, Texas 78205-2233	President and Chief Executive Officer of Girls Incorporated	Girls Incorporated 120 Wall Street New York, NY 10005-3902 Girls Incorporated is a national nonprofit research, education, and advocacy organization.

Laura D’Andrea Tyson	175 E. Houston San Antonio, Texas 78205-2233	Professor of Business Administration and Economics at the Walter A. Haas School of Business, University of California at Berkeley	The Walter A. Haas School of Business, University of California at Berkley 2220 Piedmont Avenue (delivery address) University of California at Berkeley Berkeley, CA 94720-1900

Patricia P. Upton	175 E. Houston San Antonio, Texas 78205-2233	President and Chief Executive Officer of Aromatique, Inc.	Aromatique, Inc. P.O. Box 6000 3421 Highway 25B North Heber Springs, Arkansas 72543 Aromatique, Inc. is a manufacturer and wholesaler of decorative fragrances.

Exhibit I


Name of Executive Officer (other than Directors)	Business Address	Principal Occupation	Name, Address and Principal Business of Employer
William A. Blase Jr.	175 E. Houston San Antonio, Texas 78205-2233	Senior Executive Vice President – Human Resources of AT&T Inc.	AT&T Inc. 175 E. Houston San Antonio, Texas 78205-2233

James W. Callaway	175 E. Houston San Antonio, Texas 78205-2233	Senior Executive Vice President – Executive Operations of AT&T Inc.	AT&T Inc. 175 E. Houston San Antonio, Texas 78205-2233

James W. Cicconi	175 E. Houston San Antonio, Texas 78205-2233	Senior Executive Vice President – External and Legislative Affairs of AT&T Inc.	AT&T Inc. 175 E. Houston San Antonio, Texas 78205-2233

Catherine M. Coughlin	175 E. Houston San Antonio, Texas 78205-2233	Senior Executive Vice President and Global Marketing Officer of AT&T Inc.	AT&T Inc. 175 E. Houston San Antonio, Texas 78205-2233

Rafael (Ralph) de la Vega	175 E. Houston San Antonio, Texas 78205-2233	President and Chief Executive Officer – AT&T Mobility of AT&T Inc.	AT&T Inc. 175 E. Houston San Antonio, Texas 78205-2233

Richard G. Lindner	175 E. Houston San Antonio, Texas 78205-2233	Senior Executive Vice President and Chief Financial Officer of AT&T Inc.	AT&T Inc. 175 E. Houston San Antonio, Texas 78205-2233

Forrest E. Miller	175 E. Houston San Antonio, Texas 78205-2233	Group President – Corporate Strategy and Development of AT&T Inc.	AT&T Inc. 175 E. Houston San Antonio, Texas 78205-2233

Ronald E. Spears	175 E. Houston San Antonio, Texas 78205-2233	Group President – Global Business Services of AT&T Communications Corp..	AT&T Inc. 175 E. Houston San Antonio, Texas 78205-2233

John T. Stankey	175 E. Houston San Antonio, Texas 78205-2233	Group President – Telecom Operations of AT&T Inc.	AT&T Inc. 175 E. Houston San Antonio, Texas 78205-2233

Wayne Watts	175 E. Houston San Antonio, Texas 78205-2233	Senior Executive Vice President and General Counsel of AT&T Inc.	AT&T Inc. 175 E. Houston San Antonio, Texas 78205-2233

Rayford Wilkins, Jr.	175 E. Houston San Antonio, Texas 78205-2233	Group President – Diversified Businesses of AT&T Inc.	AT&T Inc. 175 E. Houston San Antonio, Texas 78205-2233

AT&TI⁸


Name of Director	Business Address	Principal Occupation	Name, Address and Principal Business of Employer
Rayford Wilkins, Jr.	175 E. Houston San Antonio, Texas 78205-2233	Group President – Diversified Businesses of AT&T Inc.	AT&T Inc. 175 E. Houston San Antonio, Texas 78205-2233

William R. Drexel	175 E. Houston San Antonio, Texas 78205-2233	Senior Vice President and Assistant General Counsel, Consumer and Corporate of AT&T Services, Inc.	AT&T Inc. 175 E. Houston San Antonio, Texas 78205-2233

Rick L. Moore	175 E. Houston San Antonio, Texas 78205-2233	Senior Vice President – Corporate Development of AT&T Inc.	AT&T Inc. 175 E. Houston San Antonio, Texas 78205-2233

⁸	To the extent there are executive officers of AT&TI, they would also be executive officers of AT&T.

EX-99.(II) 3 dex99ii.htm TRANSACTIONS IN A SHARES, L SHARES, A SHARES ADS AND L SHARES ADS Transactions in A Shares, L Shares, A Shares ADS and L Shares ADS

Exhibit II

TRANSACTIONS IN A SHARES, L SHARES, A SHARES ADS AND L SHARES ADS

None for AT&T or AT&TI

EX-99.(III) 4 dex99iii.htm SHAREHOLDERS AGREEMENT, DATED AS OF DECEMBER 20, 2000, BETWEEN CGT AND AT&TI Shareholders Agreement, dated as of December 20, 2000, between CGT and AT&TI

Exhibit III

SHAREHOLDERS AGREEMENT, DATED AS OF DECEMBER 20, 2000, BETWEEN CGT AND AT&TI

(FORMERLY KNOWN AS SBC INTERNATIONAL, INC.)

AGREEMENT

Intending to be bound, the Parties do hereby enter into this Agreement (“Agreement”) between Carso Global Telecom, S.A. de C.V., a Mexican corporation (“Carso Telecom”), and SBC International, Inc. (“SBCI”), a Delaware corporation (collectively, the “Parties”).

RECITALS

A. Since December 20, 1990, the Parties have participated in a trust (the “Trust”) through which they originally held Telefonos de Mexico, S.A. de C.V.’s (“Telmex”) capital stock in the form of “AA” Shares (the “AA Shares”). Through the Trust, a combination of Mexican investors, including Carso Telecom, have beneficially owned 51% of the AA Shares, and SBCI had beneficially owned 24.5% of the “AA” Shares.

B. On November 14, 1990, the Parties entered into an agreement, as amended from time to time (the “Original Joint Venture Agreement”) to govern their relationship as participants in the Trust and to ensure voting control of Telmex.

C. On April 27, 2000, the Parties entered into a Conversion and Termination Agreement with France Telecom Financiere Internationale, to permit the conversion of its Converted AA Shares (as therein defined), terminate the Original Joint Venture Agreement and the Trust vis a vis France Telecom Financiere Internationale, and to govern certain rights in connection with such transaction.

D. The Parties now desire to terminate the Original Joint Venture Agreement, as amended, and the Trust and to create a new joint venture agreement (the “New Joint Venture Agreement”) to govern the Parties’ relationship within Telmex and to amend the Telmex By-laws pursuant to this Agreement.

NOW THEREFORE, in consideration of the representations, warranties, covenants and agreements herein contained, and of the mutual benefit to be derived herefrom, the Parties hereto agree as follows

1.	Management of Telmex.

A. The responsibility for the management of Telmex shall reside with the Telmex Board of Directors (the “Board” or “Board of Directors”). However, the Board will seek input on various matters from committees the Board may establish, pursuant to the By-laws, from time to time, as well as from the Executive Committee.

B. The Director General of Telmex shall be responsible for the day-to-day administration of the business of Telmex and shall be accountable to the Telmex Board of Directors.

2.	Board Composition; Committees.

A. The Board of Directors of Telmex will continue to exist in accordance with the By-laws of Telmex as amended.

B. Carso Telecom shall nominate candidates to assume thirteen (13)

Exhibit III

positions on the Board of Directors. SBCI shall nominate candidates to assume four (4) positions on the Board of Directors. The Parties anticipate that the Board of Directors shall be subsequently reduced to thirteen (13) members, whereby at such time SBCI shall be entitled to nominate candidates to assume two (2) positions on the Board of Directors. Each of the Parties agrees to vote its “AA” Shares in favor of the other Parties’ candidates.

C. In the event the “AA” shareholders are unable for any other reason to elect seventeen (17) members of the Board, then the allocation of Board members among the Parties shall change accordingly but shall maintain, so far as possible, the same proportions as outlined in paragraph B above.

D. The Board will act by majority vote.

E. Executive Committee. The executive committee of the Board of Directors (the “Executive Committee”) will continue to exist in accordance with and be empowered by the By-laws of Telmex as amended and provided herein. The Executive Committee will be the principal consultative body of the Board and will be the body through which all major strategic, operational, financial and investment decisions are reviewed and recommended to the Board. The Executive Committee shall meet whenever necessary but at least prior to each Board of Directors meeting, unless otherwise agreed by the Parties. The matters for Executive Committee review and discussion shall be those items set forth in Attachment A.

At least five (5) business days written notice (by facsimile and courier) shall be given to each of the Executive Committee members of any meeting of the Executive Committee, provided always that a shorter period of notice or no notice may be given if approved by all Executive Committee members. Any such notice shall contain, inter alia, an agenda identifying in reasonable detail all of the matters to be discussed at the meeting and shall be accompanied by copies of any relevant papers to be discussed at the meeting. The Executive Committee shall have all of the power to operate and manage Telmex except for those powers the Board expressly reserves to itself. The Executive Committee shall make recommendations on all matters on which the By-laws call for Executive Committee review. Each Party agrees that it will cause its Executive Committee members to use their best efforts to achieve a common position on matters presented to the Executive Committee. Should the Parties be unable to reach a common position or it is anticipated by either Party that a common position may not be reached at an Executive Committee Meeting on any matter properly noticed pursuant to this paragraph E, they shall arrange a conference between the Chief Executive Officers of Carso Telecom, and SBCI or their respective executive designees. If the matter is not resolved by the Two Chief Executive Officers / Director Generals before the next regular scheduled Board meeting where such matter will be discussed, the matter shall be resolved by majority decision by the Executive Committee. If an agenda item for an Executive Committee Meeting was not properly noticed pursuant to this paragraph E and the Parties are not able to reach a common position on such agenda item prior to the next regular scheduled Board meeting a decision on the matter shall be postponed until the next regular scheduled Executive Committee Meeting or until a common position is reached or until notice is cured pursuant to this paragraph E, whichever comes first.

Notwithstanding the above, if it is determined by Carso Telecom in good faith that a matter subject to Executive Committee review cannot wait until the next regularly scheduled Executive Committee Meeting for its review and consideration, because time is of the essence, such specific matter shall be discussed with SBCI prior to any action being taken by the Company regarding the matter and each Party’s decision shall be reflected in the minutes of the next regularly scheduled Executive Committee Meeting.

Exhibit III

F. The Board shall not consider or vote on the Executive Committee Matters without a recommendation from the Executive Committee except for any case in which the Executive Committee did not achieve a common position regarding an agenda item pursuant to paragraph E above.

G. The Executive Committee will consist of four (4) members, three (3) of whom will be appointed by Carso Telecom, and one (1) of whom will be appointed by SBCI.

3.	Compensation for Services.

The Parties shall work with and assist the Telmex management to enhance the long-term prosperity of Telmex. The Parties will provide for a contract between each of them and Telmex which the Parties will be compensated on a commercially reasonable basis for services rendered to Telmex. The Parties agree to cause Telmex to execute the attached Management Services Agreements (MSA) (Attachment B) under which for five (5) years SBC International—Management Services, Inc. (SBCI-MSI) will provide management services to Telmex. The Party’s shall subsequently attach to this Agreement as Attachment C a MSA for which Carso Telecom shall be compensated for the services it provides to Telmex. SBCI-MSI and Carso Telecom will be compensated at least $10 million U.S. Dollars per annum each for the services provided by SBCI-MSI expatriates and Carso Telecom for the initial 2-year term of the MSA’s.

4.	Transfers of Shares.

A. Subject to applicable laws and pursuant to the right of first offer set forth below the Parties shall have the right to freely transfer their “AA” Shares. Furthermore nothing shall restrict the ability of a shareholder to: (i) convert any or all of its “AA” Shares to “L” shares in accordance with the By-laws and to transfer or sell the “L” shares and provided further that the Parties shall, subject to any limits as to percentages provided for by the by-laws, insure sufficient “L” Shares are available to allow any Party to convert “AA” Shares to “L” Shares upon request of the Party seeking to convert; or (ii) the ability of a Shareholder to create or permit to exist any pledge, lien, or other encumbrance over any AA Shares held by that Shareholder (a “Lien”), or to agree, conditionally or otherwise, to do any of the foregoing (and for the purposes of this article “dispose” shall be deemed to exclude all or any of the above), provided further that, to be valid any such Lien should provide that, in case of any disposition of the AA Shares, the right of first offer to the other Shareholder is fully complied with.

B. Notwithstanding the right of first offer provision set forth below, a Shareholder may transfer any of its “AA” Shares to:

(i)

any other Shareholder or

(ii)

an Affiliate of the transferring Shareholder who agrees in writing to be bound by the provisions of this Agreement. Affiliate as used in this Agreement shall mean, as to any person, any other person that controls, is controlled by or is under common control with such person. For purposes of this definition the term “control” of a person shall mean the possession, direct or indirect, of the power to vote 51% or more of the voting stock of such person or the direct or cause the direction of the management and policies of such person or to direct or cause the direction of the management and policies of such person, whether through the ownership of such voting stock, by contract or otherwise.

Exhibit III

C. Save for transfers permitted under paragraphs A and B if a Shareholder desires to sell or otherwise dispose of any of its “AA” Shares (“Seller”), the Seller shall give notice to the other Shareholder in writing (“Transfer Notice”) of such desire together with details of the purchase price and other material terms requested by the Seller. A Transfer Notice shall, except as hereinafter provided, be irrevocable.

D. On receipt of the Transfer Notice, the other Shareholder (“Continuing Shareholder”) shall have the right to purchase, in aggregate, all (but not some only) of the Seller’s “AA” Shares being sold at the purchase price specified in the Transfer Notice. If SBCI is prohibited by Mexican Law from purchasing all of the Seller’s “AA” Shares SBCI shall have the right to purchase Seller’s “AA” Shares through a third party, trust or other entity legally allowed to hold “AA” Shares.

E. The Transfer Notice will invite the Continuing Shareholder to give written notice (“Acceptance Notice”) to the Seller within thirty (30) days (for the purposes of this Agreement the term “days” shall mean calendar days) of receipt of the transfer notice (“Acceptance Period”) whether it is willing to purchase all of the Seller’s “AA” Shares. For the avoidance of doubt, the Acceptance Notices from the Continuing Shareholder must account for the purchase and sale of all of the Seller’s “AA” Shares being sold.

F. The Continuing Shareholder shall become bound (subject only to any necessary approvals of its shareholders in general meeting and/or of its Board or of any competent regulatory authorities, including anti-trust commissions or entities in any required jurisdiction) to purchase the Seller’s Shares on giving the Acceptance Notice. In such event, completion of the sale and purchase of the Seller’s Shares shall take place within sixty (60) days after the latter of the giving of such notice or, after the obtaining of necessary approvals of any competent governmental, regulatory or other authorities (including, without limitation, the approval of any governmental, regulatory or other authorities which have jurisdiction over any tangible or intangible asset in which Telmex may at the relevant time be directly or indirectly interested). Notwithstanding the foregoing, such notice and right of the Continuing Shareholders to acquire the Seller’s Shares shall cease to have effect if:

(i)

any necessary approval of the Continuing Shareholder’s shareholders in general meeting and/or its appropriate board has not been obtained within the said period of sixty (60) days or

(ii)

any necessary approval of any competent governmental, regulatory or other authority has or have not been obtained within one hundred and eight (180) days after the giving of such notice or

(iii)

if earlier than the expiry of such latter period, any such authority has conclusively refused to grant any such approval and no appeal or other request for review is timely filed and remains pending.

G. If:

(i)

at the expiration of the Acceptance Period the aggregate number of Seller’s Shares to be purchased by the Continuing Shareholders is less than the total number of Shares Seller desires to sell; or

(ii)

the deadlines set forth in paragraph F have not been satisfied,

Exhibit III

the Seller shall be entitled to transfer all of the “AA” Shares of the Seller specified in the Transfer Notice on a bona fide arm’s length sale to a third party purchaser at a price being not less than the purchase price specified in the Transfer Notice, provided that such transfer shall have been completed within a period of one hundred and eighty (180) days after the latter of:

(i)

the date of the Transfer Notice; or

(ii)

the date the Continuing Shareholder’s right to acquire the Seller’s Shares shall have ceased to have effect pursuant to subparagraph B, the date on which such notice ceased to have effect;

and further provided that:

(iii)

third party purchaser shall have agreed in advance in writing to sign and be governed by a shareholder agreement with provisions in compliance with this Agreement; and

(iv)

all necessary approvals of governmental or applicable authority shall have been obtained.

The Continuing Shareholder shall be permitted to confirm that the bona fide offer from the third party purchaser is firm and subject only to conditions that could reasonably be expected to be satisfied, by (i) review of the documents involved in such bona fide offer and (ii) requiring that the proposed transferee submit evidence reasonably satisfactory to the Continuing Shareholder of financing for such purchase.

H. Should Carso Telecom transfer its Telmex “AA” shares to a third party so that Carso Telecom no longer directly or indirectly owns the majority of the “AA” shares, SBCI shall have a tag along right which will permit SBCI, in its discretion, to sell to the third party buyer and requires the third party purchaser to acquire the same portion of its “AA” Shares as Carso Telecom is selling under the same terms and conditions (the “Tag-Along Shares”). SBCI shall exercise its rights under this paragraph H by indicating in writing to Carso Telecom that SBCI intends to include the Tag-Along Shares in the Seller contemplated transfer.

I. Should Carso Telecom transfer its Telmex “AA” shares to a third party so that Carso Telecom no longer directly or indirectly owns a majority of the “AA” shares, Carso Telecom shall have a drag along right which will permit Carso Telecom, in its discretion, to require SBCI to sell the same portion of its “AA” shares as Carso Telecom is selling to the third party under the same terms and conditions (the “Drag-Along Shares”). Carso Telecom shall exercise its rights under this paragraph I by indicating in writing to SBCI that Carso Telecom intends to include the Drag-Along Shares in its contemplated transfer.

5.	Confidentiality and Publicity.

Subject to obligations to make this Agreement known under any stock exchange rules or other legal requirements, so long as this Agreement is in effect and for a period of five years after termination for any cause, each Party agrees, after receipt of any specific information, to maintain in confidence such information and to use solely for the purpose of the transactions contemplated herein, all documents or information of any kind pertaining to Telmex or the Parties, which may have been created or communicated in a confidential manner by the other Parties, by Telmex, or by the Mexican Government. Each Party will cause its consultants, agents and employees to comply with the obligations it has assumed hereunder.

Exhibit III

The Parties agree that they will not make any public announcements or other disclosure of this Agreement, its purpose or contents, or of any activities conducted pursuant hereto, without prior mutual consultation and consent, except as may be required by law.

6.	Certain Immediate Actions.

The Parties agree:

A. that the by-laws (estatutos) of Telmex shall be amended to substantially reflect the content of this Agreement by no later than April 30, 2001 and, for such purposes, a Special Meeting of the holders of “L” Shares, a Special Meeting of the holders of “AA” Shares and a General Meeting of shareholders of Telmex will be called and held.

B. to terminate the Trust upon establishment of the Second Trust and will thereafter be of no further force and effect.

C. to execute and deliver any further document or instrument that the trustee of the Trust may require to formalize such termination.

D. that SBCI will establish, as soon as practicable, the Second Trust attached herein as Attachment D

E. to terminate the Original Joint Venture, as of the date this Agreement becomes effective and will thereafter be of no further force and effect.

F. to execute the Management Service Agreements, as attached herein as Attachment B.

7.	Affiliates and Assignment.

The Parties acknowledge that each may assign its rights and obligations under this Agreement to one or more Affiliated companies in their respective corporate groups. This Agreement shall bind the Parties and their respective successors and assigns. Except as expressly provided herein, no Party shall be entitled to assign its interest in this Agreement without the express written consent of the other Party.

8.	Governing Law.

Except for the procedural rules set forth in Clause 9 relating to arbitration, this Agreement shall be governed by and construed in accordance with the laws of Mexico; provided, however, that if any term of any obligation is unenforceable but the performance of such term or such obligation does not violate the law, governmental regulations, or public policy of Mexico, then in any arbitration pursuant to Clause 9 the tribunal shall apply in respect of the terms of such obligations and its enforcement and/or compensation for the breach thereof, internationally acceptably contract law principles in such a manner as to give full effect to such obligation and intent of the Parties thereto.

9.	Good Faith; Cooperation.

The Parties shall promptly do and perform such further acts, matters, or things and execute and deliver all further instruments required by law or which may be reasonably requested by any Party to establish, maintain, and protect the respective rights and remedies of any Party and to carry out and effect to the intent and purposes of this Agreement.

Exhibit III

10.	Arbitration.

Any controversy or claim arising out of or relating to this Agreement or any breach thereof that has not been resolved between the Parties after good faith discussions may be settled by arbitration. The arbitration shall be held in Mexico City, Mexico under the Rules of Conciliation and Arbitration of the International Chamber of Commerce by three arbitrators appointed in accordance with said rules. The arbitration shall be conducted in Spanish and English. The arbitral award shall be final and binding on the Parties.

11.

Notices.

All communications hereunder shall be in writing and shall be deemed effectively given on day after being sent by telecopy or courier, confirmed by letter as follows:

Carso Global Telecom, S.A. de C.V.

c/o Chief Financial Officer

Insurgentes Sur No. 3500, Colonia Pena Pobre, 14060

Mexico, D. F.,

Telecopy: 525-726-3659

Attention:

SBC International, Inc.

175 E. Houston, Room 10-A-50

San Antonio, Texas 78205

Telecopy: 210-351-5166

Attention: Chief Executive Officer

12.	Amendments; Entire Agreement; Language.

This Agreement may not be amended or modified except by a written instrument signed by the Parties. This Agreement supersedes all prior agreements or understandings with respect to the subject matter hereof among or between any of the Parties, including, among others the Original Joint Venture Agreement and the Trust. This Agreement has been prepared in both English and Spanish versions, and each version is equally authoritative.

13.	Representations, Covenants, and Warranties.

Each Party covenants, represents, and warrants with respect to itself that:

A. It is of good standing and has full power and authority to enter into and perform this Agreement and any other agreement or instrument to be executed pursuant t o this Agreement and that this Agreement constitutes, and such agreements and instruments will constitute, binding obligations on such Party in accordance with their respective terms and the execution and performance of this Agreement and all related agreements will not contravene or breach any obligations, agreements, governmental ruling, or laws by which such Party is bound.

B. Such Party is not a party to any litigation or subject to any governmental investigation or proceedings that could in any way affect such Party’s ability to enter into or perform the terms and conditions of this Agreement.

C. The execution, delivery, and performance of this Agreement by such Party shall not, with or without the giving of notice or passage of time, or both, conflict with, result in a breach of, default or loss of rights under, or result in the creation of any lien, charge or encumbrance pursuant to any provisions of such Party’s incorporation documents or any franchise, mortgage, deed of trust, lease, license, agreement, understanding, law, order, judgment, or other restriction to which such Party or any subsidiary or holding company of such Party is a party or by which any of them may be bound or affected which would materially adversely affect its ability to perform its obligations under this Agreement.

Exhibit III

14.	Compliance with Applicable Law.

No Party shall be required to take any action under this Agreement to the extent that such action would violate present or future applicable law, including, without limitation, legal or administrative provisions in the United States of America and provisions in force in Mexico or in the future enacted in Mexico to govern Telmex, its operations, governmental authorizations or the duly authorized Telmex By-laws as in effect from time to time. In the event that any Party in good faith concludes that taking an action required by this Agreement would cause it to violate applicable law, it shall give prompt and detailed notice thereof to the other Parties and shall consult in good faith with other Parties so as to arrive at a means of carrying out to the maximum extent possible the intent of this Agreement without violation.

15.	Severability.

A holding by any court or other tribunal of competent jurisdiction that any provision of this Agreement is invalid or unenforceable shall not result in invalidation or unenforceability of the entire Agreement and all remaining terms shall remain in full force and effect. Following any such holding, the Parties shall negotiate in good faith new provisions to restore this Agreement as nearly as possible to its original intent and effect.

16.	Relation of Parties.

Nothing herein shall cause the Parties to be treated as partners, principals and agents. None of the Parties shall have any authority to bind the others to any obligation without its prior written consent.

17.	Further Assurances.

Each party hereto shall do and perform or cause to be done and performed all such further acts and things and shall execute and deliver all such other agreements, certificates, instruments, and documents as any other Party hereto may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

18.	Indemnification.

Each Party hereto shall indemnify and hold harmless each other Party from and against all claims, liabilities, actions, suits, proceedings, assessments, judgments and losses, including interest, penalties reasonable attorneys fees, and reimbursements arising out of or resulting from the breach by such Party of any representation, warranty, covenant, obligation, or agreement of such Party contained in this Agreement or in any other associated agreement.

19.	Condition.

This Agreement shall be in full force and effect upon the establishment of the Second Trust as contemplated under Article 6.

20.	Termination.

A. This Agreement is made for a term of five (5) years (the “Term”) and shall automatically be renewed for successive two (2) year terms under the same terms and conditions, unless any Party shall seek to terminate it on six months notice before the end of the Term or any successive two (2) year term.

B. Before the end of its Term, this Agreement may be terminated only upon mutual consent of all the Parties. It shall also be terminated automatically upon occurrence of any of the following:

(i)

dissolution and liquidation of Telmex; or

(ii)

material breach by one of the Parties, which will allow termination as to that breaching Party or

(iii)

the conversion by any of the Parties of all its Series “AA” Shares into Series “L” Shares.

C. Upon termination of this Agreement before expiry of its term, all rights and obligations under this Agreement shall conclude and become ineffective except that the rights and obligations of any Party having accrued prior to such termination shall not be affected thereby.

Exhibit III

Executed this 20th day of December 2000, by the undersigned authorized officers of the Parties.


CARSO GLOBAL TELECOM, S.A. de C.V.

By:		/s/ Eduardo Valdes Acra
Name:		Eduardo Valdes Acra
Title:		Attorney-in-Fact

SBC International, Inc.

By:		/s/ Mark Royse
Name:		Mark Royse
Title:		President

Exhibit III

Attachment A

Matters for the Executive Committee

^¡

Any amendment, change or other modification or restatement of the by-laws.

^¡

The issuance, authorization, cancellation, alteration, modification, reclassification, redemption or any change in, of, or to any equity security of the Company or any of its subsidiaries.

^¡

The transfer or other disposition (other than inventory, obsolete assets or transfers in the ordinary course of business of the Company, or any other subsidiary) of, or placing any encumbrance (other than encumbrances arising by operation of law) on, any asset of the Company or any of its subsidiaries with a value in excess of $300,000,000 (Three Hundred Million Dollars).

^¡

Entry into a new line of business, or the acquisition of any interest in, another person or entity by the Company, or its subsidiaries for or in an amount in excess of $100,000,000 (One Hundred Million Dollars).

^¡

Discussion of annual capital expenditure budget. Quarterly update at Ex-Com with discussion and consideration of deviations or requests for increases of said budget.

^¡

Review and consideration of any transaction regarding debt, loans, or borrowing of the Company or its subsidiaries in excess of $300,000,000 (Three Hundred Million Dollars) or any new revolving credit facility of the Company or any of its subsidiaries permitting aggregate borrowing at any one time outstanding to exceed $300,000,000 (Three Hundred Million Dollars) of new indebtedness.

^¡

Discussion of business plan or annual budget. Ex-Com review of actual results to budget and discussion of deviations or requests for increases of said budget or business plan.

^¡

Review and consideration of the Director General of the Company.

^¡

A merger, consolidation or other business combination effecting the Company or its subsidiaries.

^¡

Entering into any contracts or transactions, with or for the direct or indirect benefit of an “AA” shareholder or one of its affiliates not within the policy guidelines approved by the Executive Committee.

^¡

Discussion of Company dividend policy.

^¡

The transfer of trade names, trademarks, and the goodwill associated therewith.

EX-99.(IV) 5 dex99iv.htm TRUST AGREEMENT Trust Agreement

Exhibit IV

TRUST AGREEMENT, DATED AS OF MARCH 28, 2001, AMONG BANCO INTERNATIONAL, S.A.,

BANCO INBURSA, AT&TI (FORMERLY KNOWN AS SBC INTERNATIONAL, INC.)

AND CGT (SPANISH VERSION)

CONTRATO DE FIDEICOMISO IRREVOCABLE QUE CELEBRAN POR UNA PARTE, COMO FIDEICOMITENTE BANCO INTERNACIONAL, S.A. DEPARTAMENTO FIDUCIARIO, AL CUAL SE HARA REFERENCIA EN LO SUCESIVO COMO “FIDEICOMITENTE”, REPRESENTADO POR SU DELEGADO FIDUCIARIO SENOR LIC. EDUARDO AZCOITIA MORAILA Y, EN SU CARACTER DE APODERADA ESPECIAL, LA LIC. REBECA TREJO SANCHEZ, Y POR LA OTRA COMO FIDUCIARIO BANCO INBURSA, S.A., INSTITUCION DE BANCA MULTIPLE, GRUPO FINANCIERO INBURSA, DIVISION FIDUCIARIA, AL CUAL SE HARA REFERENCIA EN LO SUCESIVO COMO EL “FIDUCIARIO”, REPRESENTADO POR SU DELEGADO FIDUCIARIO LIC. RAUL ZEPEDA RUIZ, CON LA COMPARECENCIA DE SBC INTERNATIONAL, INC., A LA CUAL EN LO SUCESIVO SE HARA REFERENCIA COMO EL “FIDEICOMISARIO”, REPRESENTADO POR LOS SENORES MICHAEL J. VIOLA Y MARK E. ROYSE, ASI COMO CON LA COMPARECENCIA DE CARSO GLOBAL TELECOM, S.A. DE C.V., REPRESENTADO POR EL LIC. EDUARDO VALDES ACRA DE CONFORMIDAD CON LOS SIGUIENTES ANTECEDENTES, DECLARACIONES Y CLAUSULAS:

A N T E C E D E N T E S

Con fecha 20 de diciembre de 1990, se celebro un Contrato de Fideicomiso sobre la totalidad de las acciones Serie “AA” de Telefonos de Mexico, S.A. de C.V., (de aqui en adelante Telmex) que suscribieron el Gobierno Federal de los Estados Unidos Mexicanos, Grupo Carso, S.A. de C.V., Southwestern Bell International Holdings Corporation (hoy SBC International, Inc.) y France Cables et Radio.

II.

Que en virtud de una escision de TELMEX en dicho fideicomiso se encuentran tambien fideicomitidas 1,059,890,076 (un mil cincuenta y nueve millones ochocientas nueve mil setenta y seis) acciones emitidas por America Movil, S.A. de C.V., de las cuales SBC International, Inc., es tambien fideicomisario unico (Fideicomisario B-I).

III.

Que de conformidad con las Declaraciones I-g y 1-h del Contrato de Fideicomiso de fecha 20 de noviembre de 1990 y demas aplicables y en base con el entonces vigente articulo 15 del Reglamento de la Ley para Promover la Inversion Mexicana y Regular la y la Regla 1, inciso “A” de la Resolucion General Numero 3 publicada en el Diario Oficial de la Federacion el 9 de agosto de 1990, la Secretaria de Comercio y Fomento Industrial, previa opinion favorable de la Comision Nacional de Inversiones Extranjeras, en oficio numero 7982 del 19 de diciembre de 1990 y en oficio 7983 del 19 de diciembre de 1990 aprobo la celebracion del presente Contrato de Fideicomiso.

I.	Declara el FIDEICOMITENTE:

(A)	Que es una Institucion de credito debidamente constituida de conformidad con las leyes mexicanas, y que cuenta con las facultades para desempenar el cargo de fiduciario en el presente fideicomiso.

(B)

Que en cumplimiento a los fines del fideicomiso a que se refiere el Antecedente I, desea transferir y entregar al FIDUCIARIO las acciones Serie “AA” de TELMEX que se describen en el Anexo “A” de este Contrato que corresponden al FIDEICOMISARIO, en virtud de las instrucciones expresas que del FIDEICOMISARIO ha recibido.

II.	Declara el FIDUCIARIO:

(A)	Que es una Institucion de credito debidamente constituida de conformidad con las leyes mexicanas, y que cuenta con las facultades para desempenar el cargo de fiduciario en el presente fideicomiso.

Exhibit IV

III.	Declara el FIDEICOMISARIO:

(A)	Que es una sociedad debidamente constituida conforme a las leyes del Estado de Delaware, Estados Unidos de America; que tiene la capacidad legal para la celebracion de este Contrato y que sus representantes tienen todas las facultades legales para celebrarlo.

(B)	Que esta de acuerdo en que la FIDEICOMITENTE transmita y entregue al FIDUCIARIO el titulo de las acciones Serie “AA” de TELMEX que se describe en el Anexo “A” de este Contrato que les corresponden en virtud del Contrato de Fideicomiso a que se refiere el Antecedente I.

Con base en los Antecedentes y Declaraciones que anteceden las partes celebran el Contrato que se contiene en las siguientes:

C L A U S U L A S

PRIMERA. La FIDEICOMITENTE entrega y transfiere con caracter irrevocable en este acto al FIDUCIARIO y este recibe, en fideicomiso y para los fines que se establecen en este Contrato, el titulo de las acciones Serie “AA” de TELMEX que se describe en el Anexo “A” de este Contrato, o sea 1,059,890,076 (un mil cincuenta y nueve millones ochocientos noventa mil setenta y seis) acciones comunes nominativas de la Serie “AA” de TELMEX.

Por su parte, el Fiduciario en este acto otorga en favor del Fideicomitente el recibo que corresponda respecto del patrimonio fideicomitido.

El FIDEICOMISARIO podra aportar en cualquier tiempo al presente fideicomiso, mediante su transferencia y entrega al FIDUCIARIO, acciones adicionales Serie “AA” de TELMEX para que sean afectas a los fines de este fideicomiso y pasen a formar parte del patrimonio del propio fideicomiso, en el entendido que el FIDEICOMISARIO no podra aportar al fideicomiso un porcentaje mayor de acciones Serie “AA” al permitido en los estatutos sociales de TELMEX.

SEGUNDA. Son partes de este fideicomiso:

FIDUCIARIO: Banco Inbursa, S.A. Division Fiduciaria.

FIDEICOMITENTE: Banco Internacional, S.A. Division Fiduciaria.

FIDEICOMISARIO: SBC International, Inc.

TERCERA. Son fines del FIDEICOMISO materia de este Contrato:

1.	Que el FIDUCIARIO reciba y conserve la propiedad y titularidad de las acciones Serie “AA” de TELMEX y las conserve en FIDEICOMISO, de acuerdo con los terminos y condiciones establecidos en el presente contrato.

Que el FIDUCIARIO ejercite todos los derechos corporativos y patrimoniales o pecuniarios que correspondan a o se deriven de las acciones Serie “AA” de TELMEX que formen parte del patrimonio del FIDEICOMISO; en el concepto de que si en el ejercicio de dichos derechos el FIDUCIARIO recibiese acciones Serie “AA” de TELMEX, dichas nuevas acciones pasaran a formar parte del patrimonio del FIDEICOMISO, quedaran afectas a los fines del mismo y se consideraran como parte de las acciones Serie “AA” de TELMEX para todos los

Exhibit IV

efectos del presente Contrato, y las acciones deberan ser votadas en el mismo sentido y forma en que vote sus acciones el accionista Carso Global Telecom, S.A. de C.V., sociedad mexicana con clausula de exclusion de extranjeros, salvo para el nombramiento de los Consejeros y miembros del Comite Ejecutivo de America Movil.

En cualquier tiempo y cuando asi lo instruyese expresamente y por escrito el FIDEICOMISARIO, el FIDUCIARIO proceda a convertir las acciones Serie “AA” en otras series de acciones de TELMEX, o bien a transferir, entregar o vender total o parcialmente los derechos fideicomisarios o los titulos de las acciones Serie “AA” de TELMEX, dentro o fuera de la Bolsa Mexicana de Valores, S.A. de C.V., que formen parte del patrimonio del FIDEICOMISO, a las personas debidamente capacitadas para adquirirlas en los terminos de las disposiciones legales y estatutarias en vigor en la fecha en que se efectue tal conversion y/o transmision, y en los terminos y condiciones que le indique el FIDEICOMISARIO.

Que el FIDUCIARO reciba, cuando asi corresponda, el precio de enajenacion de las acciones Serie “AA” de TELMEX, asi como cualquier rendimiento o producto derivado del patrimonio del FIDEICOMISO y lo transmita o entregue al FIDEICOMISARIO, segun instrucciones escritas y mientras no efectue tal transmision o entrega, administre los recursos correspondientes, invirtiendolos en valores de entre los autorizados por escrito por el FIDECOMISARIO, que instruira al FIDUCIARIO por escrito en que valores debera invertir.

Que el FIDUCIARIO reciba, en base a las instrucciones por escrito del y entregue al FIDEICOMISARIO, las cantidades que correspondan a las acciones Serie “AA” de TELMEX por concepto de dividendos, o en su caso por amortizacion de acciones o reembolso por reducciones del capital social o por cualquier otro concepto. Asimismo que el FIDUCIARIO reciba las acciones “AA” adicionales por concepto de dividendo en acciones, divisiones (splits) o capitalizacion de utilidades.

Que, en caso de que una Asamblea de Accionistas de TELMEX se acuerde un aumento de capital a pagar mediante nuevas aportaciones de los accionistas, el FIDUCIARIO ejercite el derecho de preferencia para suscribir y pagar las nuevas acciones que se emitan para representar tal aumento y que correspondan a las acciones Serie “AA” de TELMEX, siempre y cuando, con cuando menos 5 (cinco) dias habiles a la fecha limite para ejercitar el derecho de preferencia y suscribir y pagar las nuevas acciones emitidas por TELMEX de que se trate, el FIDUCIARIO hubiese recibido del FIDEICOMISARIO, tanto instrucciones expresas por escrito para suscribir las nuevas acciones como el importe de las cantidades necesarias para pagar a TELMEX el precio o valor de suscripcion de las nuevas acciones. Los aumentos de capital deberan ser suscritos por el FIDUCIARIO, proporcionalmente a su participacion accionaria, salvo instrucciones por escrito en contrario por parte del FIDEICOMISARIO al FIDUCIARIO.

7.	Que conforme a las instrucciones que reciba del FIDEICOMISARIO el FIDUCIARIO realice todos aquellos otros actos que fueren necesarios para la realizacion de los fines del FIDEICOMISO, incluyendo en su caso los actos de defensa del patrimonio del FIDEICOMISO.

CUARTA. Para el ejercicio de los derechos corporativos de las acciones Serie “AA” de TELMEX, en particular para representar y votar las acciones Serie “AA” de TELMEX en las Asambleas Ordinarias, Extraordinarias o Especiales de Acciones

Exhibit IV

de TELMEX, el FIDUCIARIO debera representar dichas acciones por conducto del funcionario o representante del FIDUCIARIO que este mismo designe y debera necesariamente de votar dichas acciones en el mismo sentido y forma que vote sus acciones Carso Global Telecom, S.A. de C.V., sociedad mexicana con clausula de exclusion de extranjeros, salvo en el caso de Asambleas de Accionistas de TELMEX que deban resolver respecto a la designacion de los miembros del Consejo de Administracion y del Comite Ejecutivo de TELMEX, en cuyo caso el FIDEICOMISARIO podra instruir directamente al FIDUCIARIO, respecto de la designacion de los miembros del Consejo de Administracion y del Comite Ejecutivo de TELMEX.

El FIDUCIARIO debera recibir las instrucciones de voto correspondientes, por escrito, del FIDEICOMISARIO con 2 (dos) dias habiles de anticipacion a la celebracion de la Asamblea de Accionistas.

QUINTA. El FIDUCIARIO no tendra responsabilidad alguna frente al FIDEICOMISARIO por hechos o actos de terceros que impidan o dificulten la ejecucion de los objetos afines del FIDEICOMISO, ni por actuar en acatamiento de las instrucciones que reciba del FIDEICOMISARIO.

En caso de defensa del patrimonio del FIDEICOMISO el FIDUCIARIO solo estara obligado a otorgar poderes a la persona que le indique el FIDEICOMISARIO para que se avoque a la defensa del mismo, sin que el FIDUCIARIO sea responsable en forma alguna por el resultado de dicha defensa, de igual forma no sera responsable de los gastos, ni de los honorarios que se generen por dicha defensa.

SEXTA. El presente FIDEICOMISO tendra una duracion maxima de 30 (treinta) anos contados a partir de la fecha de firma del presente Contrato. Al termino de dicho plazo, el FIDEICOMISARIO podra instruir al FIDUCIARIO para que transfiera el patrimonio del FIDEICOMISO a otro fideicomiso en la institucion fiduciaria que determinen, con fines similares a los previstos en el presente FIDEICOMISO, siendo FIDEICOMISARIO del nuevo fideicomiso quien tuviese tal caracter en el presente. Si al termino de dicho plazo el FIDUCIARIO no hubiese recibido instrucciones respecto a la forma y terminos de transferir el patrimonio de este FIDEICOMISO o a vender transmitir o convertir las acciones Serie “AA” de TELMEX que aun formen parte del FIDEICOMISO, el FIDUCIARIO procedera a vender la totalidad de las acciones Serie “AA” de TELMEX que aun forme parte del patrimonio del FIDEICOMISO en la Bolsa Mexicana de Valores, S.A. de C.V.; y procedera a entregar el importe neto del producto de dicha venta al FIDEICOMISARIO.

Sin embargo, el FIDEICOMISO podra terminarse anticipadamente si en cualquier tiempo y a solicitud escrita del FIDEICOMISARIO, el FIDUCIARIO transmite en propiedad el patrimonio del FIDEICOMISO, en cualquiera de las formas que enseguida enunciativa mas no limitativamente se establecen:

Entregando todas las acciones Serie “AA” de TELMEX al FIDEICOMISARIO cuando lo solicite, si este tiene en ese momento la capacidad estatutaria necesaria para ser titular de dichas acciones conforme a los estatutos sociales de TELMEX aplicables y en vigor en dicho momento.

Transmitiendo todas las acciones Serie “AA” de TELMEX, a cualquier otra persona que designe el FIDEICOMISARIO, y que tenga la capacidad legal y estatutaria para ser titular de dichas acciones bajo las leyes, disposiciones y estatutos sociales de TELMEX aplicables y en vigor en dicho momento.

Exhibit IV

Vendiendo, cediendo o enajenando todas las acciones Serie “AA” de TELMEX, en la forma que determine el FIDEICOMISARIO en cuyo caso el producto derivado de dicha venta debera entregarse al FIDEICOMISARIO.

Convirtiendo todas las acciones de la Serie “AA” de TELMEX, en la forma que determine el Fideicomisario en otra serie de acciones previstas en los estatutos sociales de TELMEX.

SEPTIMA. BANCO INBURSA, S.A. Departamento Fiduciario, acepta el cargo de FIDUCIARIO y protesta su fiel y leal desempeno.

OCTAVA. Por el desempeno de su cargo el FIDUCIARIO cobrara los honorarios que se establecen el Anexo “B” que firmado por las partes se adjunta al presente Contrato.

NOVENA. A solicitud del FIDEICOMISARIO, el FIDUCIARIO le entregara un estado de cuenta detallado y satisfactorio del patrimonio del FIDEICOMISO a la fecha de dicha solicitud, asi como cualquier otra informacion razonable que le solicite.

DECIMA. En caso de que el FIDUCIARIO sea requerido a convertir pesos mexicanos a cualquier otra moneda que se encuentre disponible en el mercado financiero mexicano, para enviar cualquier cantidad a los FIDEICOMISARIO, incluyendo dividendos, distribuciones o cualquier otro producto del patrimonio del FIDEICOMISO, el FIDUCIARIO de conformidad con la legislacion aplicable convertira los pesos mexicanos a la otra moneda que elija el FIDEICOMISARIO.

DECIMA PRIMERA. Cualquier modificacion a este contrato sera valida solamente si es hecha con el consentimiento escrito del FIDEICOMISARIO y del FIDUCIARIO y Carso Global Telecom, S.A. de C.V.

DECIMA SEGUNDA. Todos los impuestos, derechos, gastos que cause el patrimonio fideicomitido, o se causen como consecuencia del presente contrato, seran a cargo del FIDEICOMISARIO, quien debera acreditar el pago de los mismos al FIDUCIARIO en el momento en que este lo solicite.

DECIMA TERCERA. El FIDUCIARIO solo podra ser sustituido por otro fiduciario que designen por escrito el FIDEICOMISARIO. Al cesar en su cargo el FIDUCIARIO por renuncia o sustitucion, elaborara un informe del patrimonio fideicomitido, que comprenda desde el ultimo informe que hubiere rendido hasta la fecha en que sea efectiva dicha renuncia o sustitucion. El FIDEICOMISARIO dispondran de un plazo de treinta dias habiles para examinarlo y formular las aclaraciones que se consideren pertinentes. Concluido el plazo, se entendera tacitamente aprobado si no se ha formulado observacion alguna. Al designarse un sucesor en las funciones fiduciarias, el nuevo fiduciario quedara investido con todas las facultades, derechos, poderes y obligaciones que acuerde con el FIDEICOMISARIO, tomando posesion de los bienes que integren el patrimonio del presente contrato. Ninguna sustitucion de FIDUCIARIO surtira efectos sino hasta que el nuevo fiduciario asuma todas las obligaciones del fiduciario anterior, bajo este Contrato.

DECIMA CUARTA En cumplimiento de lo dispuesto por el inciso b) de la fraccion XIX de Articulo 106 de la Ley de Instituciones de Credito, se transcribe el contenido del mismo.

“Articulo 106. A las instituciones de credito les estara prohibido: ...- XIX. En la realizacion de las operaciones a que se refiere la fraccion XV del Articulo 46 de esta Ley: ...- b) Responder a los fideicomitentes, mandantes o comitentes, del incumplimiento de los

Exhibit IV

deudores, por los creditos que se otorguen o de los emisores, por los valores que se adquieran, salvo que sea por su culpa, segun lo dispuesto en la parte final del articulo 356 de la Ley General de Titulos y Operaciones de Credito, o garantizar la percepcion de rendimientos por los fondos cuya inversion se les encomiende. Si al termino del fideicomiso, mandato o comision constituidos para el otorgamiento de creditos, estos no hubieren sido liquidados por los deudores, la institucion debera transferirlos al fideicomitente o fideicomisario, segun sea el caso, o al mandante o comitente, absteniendose de cubrir su importe.

Cualquier pacto contrario a lo dispuesto en los dos parrafos anteriores, no producira efecto legal alguno.

En los contratos de fideicomiso, mandato o comision de insertara en forma notoria este inciso y una declaracion de la fiduciaria en el sentido de que hizo saber inequivocamente su contenido a las personas de quienes haya recibido bienes para su inversion.”

El FIDUCIARIO en cumplimiento al ordenamiento antes descrito, hace del conocimiento de las partes su contenido en los terminos de dicho Articulo.

DECIMA QUINTA. Para todo lo relativo a este contrato las partes designan como sus domicilios convencionales los siguientes:


EL FIDEICOMITENTE:		Banco Internacional, S.A.
		Division Fiduciaria
		Paseo de la Reforma No. 156, Piso 10
		Colonia Cuauhtemoc
		06600 Mexico, D.F.

EL FIDUCIARIO:		Banco Inbursa. S.A.
		Division Fiduciaria
		Insurgentes Sur No. 3500, Piso 1
		Col. Pena Pobre
		14060, Mexico, D.F.

EL FIDEICOMISARIO:		SBC International, Inc.
		175 E. Houston
		San Antonio, Texas 78205, Estados Unidos de America
		Telefax: (210) 351 3849
		Atencion: Sr. Michael J. Viola

Con copia a:		Noriega y Escobedo, A.C.
		Sierra Mojada No. 626
		Lomas Barrilaco
		11010 Mexico, D.F.
		Telefax: 52 84 33 00
		Atencion: Lic. Carlos Bernal Verea.

Todos los avisos, instrucciones y comunicaciones de cualquier clase seran por escrito y considerados validos cuando sean enviados a los domicilios antes mencionados, a menos que la parte involucrada haya notificado previamente por escrito a la otra parte el cambio de su domicilio. Para efectos de este Contrato, “por escrito” significara cualquier forma de comunicacion escrita o comunicacion enviada por telefax.

Exhibit IV

DECIMA SEXTA. En todo lo no previsto en este Contrato y el Fideicomiso en el establecido, se regiran por las leyes aplicables de los Estados Unidos Mexicanos y para todo lo relativo a la interpretacion, ejecucion o cumplimiento de este Contrato, las partes se someten a la jurisdiccion de los Tribunales competentes de la Ciudad de Mexico, Distrito Federal, renunciando expresamente a cualquier otra jurisdiccion que pudiere corresponderles por razon de su domicilio presente o futuro.

DECIMA SEPTIMA. Cada una de las partes reconoce la personalidad y capacidad de las demas partes, asi como las facultades de sus representantes para celebrar el presente Contrato.

Este Contrato y su anexo se firman en cuatro ejemplares en la Ciudad de Mexico, el 28 de marzo de 2001.

FIDUCIARIO

BANCO INBURSA, S.A, Institucion de Banca Multiple,

Grupo Financiero Inbursa.

Division Fiduciaria

Por: /s/ Lic. Raul Zepeda Ruiz

Por: Lic. Raul Zepeda Ruiz

Delegado Fiduciario

FIDEICOMITENTE

BANCO INTERNACIONAL, S.A.

Division fiduciaria


/s/ Eduardo Azcoitia Moraila		/s/ Rebeca Trejo Sanchez
Por: Lic. Eduardo Azcoitia Moraila		Lic. Rebeca Trejo Sanchez
Subdirector Fiduciario		Apoderada Especial

	FIDEICOMISARIO
	SBC INTERNATIONAL, INC.

/s/ Michael J. Viola		Mark E. Royse
Michael J. Viola		Mark E. Royse
Vicepresidente y Tesorero		Presidente de SBCI- Mexico

	Carso Global Telecom, S.A. de C.V.

	/s/ Eduardo Valdes Acra
	Lic. Eduardo Valdes Acra

Exhibit IV

Anexo “A”

EL TITULO DEFINITIVO NO. 0000002, EMISION 2000 DE FECHA 20 DE ENERO DE 2000 QUE AMPARA 1,059’890,076 ACCIONES NOMINATIVAS Y LIBERADAS DE LA SERIE “AA” COMUNES REPRESENTATIVAS DE LAS 16,171,080,182 ACCIONES DE LA PARTE MINIMA FIJA DEL CAPITAL SOCIAL DE TELEFONOS DE MEXICO, S.A. DE C.V.

<PAGE>

ANEXO “B”

EL FIDEICOMISARIO conviene en pagar al FIDUCIARIO por el estudio, aceptacion, custodia, administracion y manejo del fideicomiso y su patrimonio, la cantidad anual de US$19,000.00 (Diecinueve mil dolares, moneda del curso legal de los Estados Unidos de America 00/100), mas el impuesto al valor agregado (IVA), la cual sera cubierta por el primer ano a la firma del presente contrato; y por el segundo ano y siguientes dentro de los 30 dias habiles siguientes a la fecha de cada aniversario del presente contrato, comenzando a partir del primer dia del segundo ano de vigencia, y de manera proporcional a los meses correspondientes, en caso de no completarse un determinado ano.

EX-99.(V) 6 dex99v.htm TRUST AGREEMENT Trust Agreement

Exhibit V

TRUST AGREEMENT, DATED AS OF MARCH 28, 2001, AMONG BANCO INTERNATIONAL, S.A.,

BANCO INBURSA, AT&TI (FORMERLY KNOWN AS SBC INTERNATIONAL, INC.)

AND CGT (ENGLISH VERSION)

THIS IRREVOCABLE TRUST AGREEMENT (THIS “AGREEMENT”) IS ENTERED INTO BY AND AMONG BANCO INTERNACIONAL, S.A., DEPARTAMENTO FIDUCIARIO (TRUSTEE DEPARTMENT), AS TRUSTOR AND REPRESENTED BY ITS DELEGATED TRUSTEES MR. EDUARDO AZCOITIA MORAILA, ESQ. AND MS. REBECA TREJO SANCHEZ, ESQ., ATTORNEY IN FACT (THE “TRUSTOR”); BANCO INBURSA, S.A., INSTITUCION DE BANCA MULTIPLE, GRUPO FINANCIERO INBURSA, DIVISION FIDUCIARIA, AS TRUSTEE AND REPRESENTED BY ITS DELEGATED TRUSTEE, HUMBERTO ZEPEDA RUIZ, ESQ. (THE “TRUSTEE”); SBC INTERNATIONAL, INC., REPRESENTED BY MR. MICHAEL J. VIOLA AND MR. MARK E. ROYSE (THE “BENEFICIARY”); AND CARSO GLOBAL TELECOM, S.A. DE C.V., A SOCIEDAD ANONIMA DE CAPITAL VARIABLE AND REPRESENTED BY EDUARDO VALDES ACRA, ESQ. (“CGT”), PURSUANT TO THE FOLLOWING ANTECEDENTS, DECLARATIONS AND CLAUSES:

ANTECEDENTS

On December 20, 1990, the Federal Government of the United Mexican States, Grupo Carso, S.A. de C.V., Southwestern Bell International Holdings Corporation (“SBC International, Inc.”) and France Cables et Radio, as the underwriters entered into a Trust Agreement with respect to all the issued and outstanding Series “AA” shares of Telefonos de Mexico, S.A. de C.V. (“Telmex”).

II.

As a result of the spin-off of America Movil, S.A. de C.V. from Telmex, one billion and fifty-nine million eight hundred and nine thousand seventy-six (1,059,809,076) shares of Series “AA” shares of Telmex described in Exhibit A attached hereto and owned by SBC International, Inc. (the “SBC Shares”) shall be included in this trust.

III.

Pursuant to Declarations 1-g and 1-h, and other applicable declarations of the Trust Agreement dated November 20, 1990, and on the basis of article 15 under the Regulations of the Law for the Promotion of Mexican Investment and Regulation of Foreign Investment, and Rule 1, subsection “A” of General Resolution No. 3 published on August 9, 1990 in the Official Journal of the Federation, the Secretary of Commerce and Industrial Development approved the execution of this Trust Agreement, in accordance with the favorable opinion of the National Commission of Foreign Investment as set forth in letter no. 7982 dated December 19, 1990, and letter no. 7983 dated December 19, 1990.

I.	The Trustor declares:

(A)	That the Trustor is a credit institution duly organized under the laws of Mexico with powers to perform the duties of trustor under this trust.

(B)	That in fulfilling the purposes of this trust, the Trustor wishes to transfer and deliver to the Trustee, pursuant to the express instructions of the Beneficiary, the SBC Shares.

II.	The Trustee declares:

(A)	That it is a credit institution duly organized under the laws of Mexico with powers to perform the duties of trustee under this trust.

III.	The Beneficiary declares:

(A)	That it is a corporation duly organized under the laws of the State of Delaware, United States of America, with legal capacity to execute this Agreement, and that its representatives have full legal power to execute this Agreement.

Exhibit V

(B)	That it agrees to have the Trustor transfer and deliver to the Trustee the SBC Shares.

On the basis of the aforementioned Antecedents and Declarations, the parties hereto hereby enter into this Agreement according to the following:

CLAUSES

FIRST. The Trustor hereby irrevocably delivers and transfers to the Trustee, and the Trustee hereby receives and accepts delivery of the share certificate representing the SBC Shares, in the trust and for the purposes set forth in this Agreement.

The Trustee shall then grant to the Trustor the receipt that corresponds to the assets held in this trust.

At any time, the Beneficiary may transfer to this Trust additional Series “AA” shares of Telmex in order to fulfill the purposes of this trust, and such shares shall become assets of this trust; provided, that the Beneficiary shall not transfer to this trust a higher percentage of Series “AA” shares than that allowed by Telmex’s bylaws.

SECOND. The following entities are parties to this trust:


Trustee:		Banco Inbursa, S.A., Division Fiduciaria

Trustor:		Banco Internacional, S.A., Division Fiduciaria.

Beneficiary:		SBC International, Inc.

THIRD. Pursuant to this Agreement, the purposes of this trust are as follows:

1.	That the Trustee shall receive and maintain ownership of and shall hold Series “AA” shares of Telmex and maintain the Series “AA” shares of Telmex in this trust, pursuant to the terms and conditions set forth in this Agreement.

That the Trustee shall exercise all corporate and proprietary or pecuniary rights corresponding to or resulting from Series “AA” shares of Telmex that are a part of the assets of this trust. If, in the exercise of these rights, the Trustee receives new Series “AA” shares of Telmex, such new shares shall (i) become assets of this trust, (ii) be allocated to the purposes of this trust, (iii) be considered part of Series “AA” shares of Telmex for all the purposes set forth in this Agreement, and (iv) be voted in the same manner and form as CGT votes its Series “AA” shares of Telmex, except in the case of electing members to Telmex’s Board of Directors and Executive Committee.

That when the Beneficiary so expressly instructs in writing, the Trustee shall proceed to convert Series “AA” shares of Telmex into other series of shares of Telmex, or the Trustee shall transfer, deliver or sell, in whole or in part, the beneficiary rights or the share certificates representing the Series “AA” shares of Telmex that are part of the assets of this Trust, within or outside the Bolsa Mexicana de Valores, S.A. de C.V., to the persons duly qualified to acquire them in accordance with the legal and statutory terms and provisions effective on the date the conversion and/or transfer is conducted, and in accordance with the terms and provisions that the Beneficiary may indicate.

Exhibit V

That the Trustee shall receive, when applicable, the sales price of any Series “AA” shares of Telmex sold hereunder as well as any yield or product resulting from the assets of this trust, which the Trustee shall transfer or deliver to the Beneficiary, upon receipt of written instructions from the Beneficiary. Prior to such transfer or delivery, the Trustee shall administer the corresponding resources by investing the resources in securities as authorized and instructed in writing by the Beneificiary.

That the Trustee shall receive, based upon written instructions from the Beneficiary, and deliver to the Beneficiary any dividends (payable in cash or shares), amortization of shares, refund for decreases of share capital or other amounts corresponding to the Series “AA” shares of Telmex that are part of this trust.

That, if the shareholders of Telmex approve an increase in the capital of Telmex by means of new contributions from its shareholders and in the form of series “AA” shares, the Trustee shall exercise any right of preference to underwrite and pay for such new shares; provided, that the Trustee has received from the Beneficiary both written instructions to underwrite such new shares and the amount necessary to pay Telmex the price or value of subscription for such new shares, at least five (5) business days prior to the final date given to exercise the right of preference and underwrite and pay for such new shares.

Capital increases shall be suscribed for by the Trustee in proportion to its share of ownership except for written instructions to the contrary on the part of the Beneficiary to the Trustee.

7.	That pursuant to instructions received from the Beneficiary, the Trustee shall conduct all other actions necessary in order to fulfill the purposes of this trust, including, as the case may be, actions to defend the assets of this trust.

FOURTH. To exercise the corporate rights of the Series “AA” shares of Telmex, in particular to represent and vote the Series “AA” shares of Telmex at Ordinary, Extraordinary or Special Telmex Meetings. The Trustee shall represent these shares through the officer or representative of the Trustee that the Trustee appoints, and the shares shall be voted in the same manner and form as the shareholder, Carso Global Telecom, S.A. de C.V., a Mexican corporation with a clause of exclusion of foreigners, votes its shares, except in the case of Telmex’s Shareholder Meetings that must resolve appointment of members of Telmex’s Board of Directors and Executive Committee, in which case, the Beneficiary shall give direct instructions to the Trustee concerning the appointment of members of Telmex’s Board of Directors and Executive Committee.

The Trustee shall receive the corresponding voting instructions in writing from the Beneficiary two (2) business days prior to the Shareholders’ Meeting.

FIFTH. The Trustee shall not be liable to the Beneficiary for any events or actions of third parties that impede or make the execution of its obligations hereunder difficult, nor for acting in compliance with instructions received by it from the Beneficiary.

In the event of defense of the assets of this trust, the Trustee shall only be required to grant powers to the person indicated by the Beneficiary to take over such defense. The Trustee shall in no way be responsible for the result of the aforementioned defense, nor shall it be responsible for any expenses or fees resulting from this defense.

Exhibit V

SIXTH. This trust shall be in effect for a maximum period of thirty (30) years beginning from the date this Agreement is executed. At the end of this period, the Beneficiary can instruct the Trustee to transfer the assets of this trust to another trust within a determined trustee institution, with purposes similar to those provided for herein. If at the end of the 30-year period, the Trustee has not received instructions with respect to the terms and conditions of the transfer of the assets of this trust, or with respect to the sale, transfer or conversion of the Series “AA” shares of Telmex that remain a part of this trust, the Trustee shall proceed to sell all of Series “AA” shares of Telmex still part of this trust on the Bolsa Mexicana de Valores, S.A. de C.V., and shall give the net amount of the proceeds of the sale to the Beneficiary.

The Trust is terminable in advance if at any time, and upon the written request of the Beneficiary, the Trustee transfers ownership of the assets of the Trust, in any one of the forms established below, in an enunciative but not limitative form:

Delivering all the Series “AA” shares of Telmex to the Beneficiary when the Beneficiary so requests; provided, that the Beneficiary has at that time the necessary legal and statutory capacity to be the holder of such shares pursuant to Telmex’s applicable laws and by-laws in effect at that time.

Transferring all the Series “AA” shares of Telmex to any other person appointed by the Beneficiary; provided, that such person has the necessary legal and statutory capacity to be the holder of such shares under Telmex’s applicable laws, provisions and by-laws in effect at that time.

Selling, assigning or alienating all of the Series “AA” shares of Telmex in the form determined by the Beneficiary, in which case, the proceeds derived therefrom shall be transferred to the Beneficiary.

Converting all of the Series “AA” shares of Telmex in the form determined by the Beneficiary into another series of shares established under Telmex’s by-laws.

SEVENTH. Banco Inbursa, S.A., Departamento Fiduciario, accepts the duty of Trustee and affirms its loyal and faithful performance.

EIGHTH. For the performance of its duties, the Trustee shall receive the fees established on Exhibit B attached hereto and signed by the parties.

NINTH. At the request of the Beneficiary, the Trustee shall provide a detailed and satisfactory statement of the assets of this trust, as of the date of such request, and any other information reasonably requested by the Beneficiary.

TENTH. If the Trustee is required to convert Mexican pesos into any other currency available in the Mexican financial market in order to send any amount to the Beneficiary, including dividends, distributions or any other payment from the assets of this trust, the Trustee, pursuant to applicable laws, shall convert Mexican pesos into the currency the Beneficiary selects.

ELEVENTH. Any modification to this Agreement shall only be valid if it is made with the written consent of the Beneficiary, the Trustee and CGT.

TWELFTH. All taxes, rights, or expenses caused by the assets of this trust or as a consequence of this Agreement shall be at the expense of the Beneficiary. The Beneficiary shall accredit its payment to the Trustee upon request.

THIRTEENTH. Only another trustee appointed by the Beneficiary in writing may replace the Trustee. When the duty of the Trustee ends because of resignation or replacement, the Trustee shall make a report of the assets of the trust from the time of the last report it has made to the date the resignation or replacement becomes effective. The Beneficiary shall have 30 working days to examine the report and make the inquiries considered pertinent. If no inquiries have been made during the

Exhibit V

30-working day period, the report shall be deemed approved. The new trustee shall be vested with all the power, rights, authorizations and obligations it agrees upon with the Beneficiary, taking possession of the goods making up the assets of this trust. The replacement of the Trustee shall not be effective until the new trustee assumes all the obligations of the Trustee under this Agreement.

FOURTEENTH. That in fulfillment of Article 106, item (b), paragraph XIX of the Law of Credit Institutions, its contents are transcribed.

“Article 106. Credit institutions shall be prohibited: ...- XIX. In the performance of operations referred to by Article 46, Paragraph XV of this Law:..- b) Respond to trustors, constituents or principals for non-fulfillment of debtors, credits granted or issuers, for values acquired, except if they are at fault in accordance with what is provided in the final part of article 356 of the General Law of Credit Certificates and Operations or ensure perception of yields for funds whose investment is entrusted to them.

If at the end of the trust, mandate or commission established to grant credits, these were not settled by debtors, the institution shall transfer them to the trustor or beneficiary, as appropriate, or to the constituent or principal abstaining from covering their amount. Any agreement contrary to what is provided in the two paragraphs above shall not have any legal effect.

In trust, mandate or commission agreements this item shall be visibly inserted with a statement from the trustee to the effect that its contents were unequivocally made known to persons from whom they have received goods for their investment.” The Trustee in fulfillment of the above statute makes its contents known to the parties in the terms of this Article.

FIFTEENTH. For everything concerning this Agreement, the parties hereto designate the following as their conventional addresses:


The Trustor:		Banco Internacional, S.A.
		Division Fiduciaria
		Paseo de la Reforma No. 156, Piso 10
		Colonia Cuauhtemoc
		06600 Mexico, D.F.

The Trustee:		Banco Inbursa, S.A.
		Division Fiduciaria
		Insurgentes Sur No. 3500, Piso 1
		Col. Pena Pobre
		14060 Mexico, D.F.

Exhibit V


The Beneficiary:		SBC International, Inc.
		175 E. Houston,
		San Antonio, Texas 78205,
		United States of America
		Telefax: (210) 351-3849
		Attention: Mr. Michael J. Viola

With a copy to:		Noriega y Escobedo, A.C.
		Sierra Mojada No. 626
		Lomas Barrilaco
		11010 Mexico, D.F.
		Telefax: 52 84 33 00
		Attention: Mr. Carlos Bernal Verea, Esq.

All notifications, instructions, and communications of any type shall be in writing and considered valid when sent to the addresses mentioned above unless the relevant party has previously notified the other party in writing of a change of address. For purposes of this Agreement, “in writing” shall signify any form of written communications or communication sent by telefax.

SIXTEENTH. Applicable laws of the Mexican United States shall govern everything not foreseen in this Agreement and the trust established hereby. For everything concerning the interpretation, execution or fulfillment of this Agreement, the parties shall submit to the jurisdiction of the competent Courts of Mexico City, Federal District, expressly waiving any other jurisdiction that might correspond to them by reason of their present or future addresses.

SEVENTEENTH. Each of the parties hereto hereby acknowledges the legal status and capacity of the other parties, as well as the power of their representatives to execute this Agreement.

EX-99.(VI) 7 dex99vi.htm DIRECTORS AND OFFICERS OF CGT Directors and Officers of CGT

Exhibit VI

DIRECTORS AND OFFICERS OF CGT⁹

CARSO GLOBAL TELECOM, S.A. de C.V.

Insurgentes Sur 3500, Col. Pena Pobre Tlalpan, 14060 Mexico D.F., Mexico


Name and Position		Principal Occupation
Directors
Carlos Slim Helu (Director and Chairman of the Board)		Chairman of the Board of Telefonos de Mexico and Carso Global Telecom

Jaime Chico Pardo (Director and Vice Chairman of the Board)		President of Telefonos de Mexico

Claudio X. Gonzalez Laporte (Director)		Chairman of the Board of Kimberly Clark de Mexico

Jose Kuri Harfush (Director)		President of Productos Dorel

Juan Antonio Perez Simon (Director)		Vice-Chairman of Telefonos de Mexico

Carlos Slim Domit (Director)		Chairman of Grupo Carso and President of Sanborns

Executive Officers
Alejandro Escoto Cano (Chief Financial Officer)		Chief Financial Officer of Carso Global Telecom

⁹	Based on the Slim 13D.

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