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America Movil Moves Closer to Deal with Telekom Austria Shareholders

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The Austrian government's state holding company, OIAG has confirmed that it is in talks with America Movil that could see the two form a venture to combine their respective stakes in Telekom Austria Group.

America Movil currently owns around 27% of Telekom Austria, while the Austrian government owns 28 percent.

The proposed syndicate would act as an informal holding company, and each of the shareholders would vote in unison. A pact between America Movil and OIAG would have control of the company with a 55% stake in the firm.

The key issue is whether the syndicate can be agreed in a way that wouldn't result in the stock exchange treating them as a joint-venture, as anyone owning more than 30% of a company is required to launch a takeover bid.

America Movil has previously said that it would not launch a hostile bid for the company on its own, but might consider a friendly offer, if for example, the Austrian government were to sell its stake.

The OIAG said that it is still in talks, and expects to reach a decision within the next few weeks.

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Tags: telekom austria  america movil  Austria