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  "documentTitle": "American Tower (AMT)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2013-07-17 00:00:00",
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  "notes": "The slide uses a quote from Jim Taiclet to contrast with the author's critical analysis of AMT's growth-at-all-costs strategy.",
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      "text": "We believe that AMT has placed such an extreme emphasis on growth that they went for quantity over quality and this is evident in acquisitions such as Vivo in 2012.",
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      "text": "Aside from the mystery of \"the missing $250 million\" discussed supra, we believe this acquisition is plagued with further issues, which will hamper further growth. From our discussions with local industry sources with firsthand knowledge of this transaction, AMT were far from happy with the outcome of this transaction but attempted to only show the positives to investors.",
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      "text": "The Site Sharing sites were leased to Oi and TIM at well above market rates, we have been informed by local sources that these were as high as 2.0x to 3.0x over market rents. It is unclear why these towers were at such a premium. However we understand that the deal was made between Site Sharing and Oi and TIM to build these towers on which they would be the only tenants and in return Site Sharing would be given disproportionately high rents. This most certainly benefited Site Sharing management when they sold it on to AMT for 12 to 13x cash flow. We believe this higher than market rents are contributing US$66 million to EBITDA.",
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      "text": "Unfortunately for shareholders, these cash flows are unsustainable. We understand that on the acquisition of these sites there was only an average three to five years left on many of the leases. We understand from sources close to the transaction these carriers are already strongly pushing to renegotiate their rent even prior to the termination of the contract. Oi and Tim are using their network size as leverage to bring down the cost of the Site Sharing portfolio in line with market rent.",
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      "text": "We believe that AMT has placed such an extreme emphasis on growth that they went for quantity over quality and this is evident in acquisitions such as Vivo in 2012. AMT are also guilty of using flawed models to justify other acquisitions, as in the case of the Site Sharing acquisition in 2011. These mistakes have led AMT to overstating growth and destroying shareholder value in Brazil. ATL’s Brazil is really just a story of two acquisitions.",
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      "text": "The strategy among our leadership team at the moment is to sort of consolidate and integrate and heavy up in the countries that we are at today. And so in Brazil, for example, Hal and his team accomplished 600 plus Tower acquisition. Grew the portfolio by over 1/3 in a country that we are already in this year",
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