Telefonica agrees on deal to buy BellSouth’s Latin American wireless assets for $4.2B in cash plus $1.5B in assumed debt.

bq. BellSouth expects to record an after-tax gain of approximately $1.9 billion and reduce consolidated debt by $1.5 billion. “The sale of our Latin American operations enables us to continue to strengthen our domestic businesses. This transaction improves our flexibility as we focus on our growth opportunities,” said Duane Ackerman, Chairman and CEO of BellSouth.

This might be a decision BellSouth will come to rue in coming years as Latin America goes into high growth mode in the wireless business. It is at that same point where China was two years ago, and India is at present.