News Column

Mexico's America Movil makes bid for remaining shares in Telekom Austria

May 15, 2014

Mexico City, May 15 (EFE).- Mexican telecommunications giant America Movil on Thursday presented its offer for the 44.8 percent stake in Telekom Austria that it and its partner, Austrian state holding company ÖIAG, do not already own.

In a filing with the Mexican Stock Exchange, the company owned by Mexican multi-billionaire Carlos Slim said it has offered 7.15 euros (some $9.80) per share, the same price it announced on April 23 when the shareholder pact was signed with ÖIAG.

That alliance, which requires the two companies to vote in unison on key company issues, created a controlling syndicate with a combined 55.2 percent stake in TA.

Because their combined stake is higher than 30 percent, the pact triggered a mandatory takeover offer for the remaining stock held by minority shareholders.

Those shareholders will have between Thursday and July 10, 2014, to tender their stock unless the deadline is extended, America Movil added.

Through ÖIAG, the Austrian government controls 28.4 percent of Telekom Austria and has veto rights over strategic decisions, while America Movil has a 26.8 percent interest.

As part of the pact, America Movil and ÖIAG agreed to support a capital increase in TA of 1 billion euros ($1.37 billion).

The Telekom Austria deal was key to Slim's expansion strategy in Europe after his attempt to take control of Dutch telecoms operator KPN fell through last year.

America Movil is looking to other markets due in part to increased regulatory pressure in Mexico, where it dominates both the fixed-line and wireless sectors.

TA, which has roughly 23 million fixed-line and wireless subscribers in eight countries of central, eastern and southeastern Europe, posted nearly 4.2 billion euros (around $5.8 billion) in revenue in 2013 and had 16,000 employees at the end of last year.

America Movil, the telecommunications services leader in Latin America, had 279 million wireless subscribers and 69 million fixed revenue generating units in the Americas at the close of last year.



For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: EFE Ingles

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters