TIM Reduces its Austrian Investment

Telekom Austria has said that it is to buy Telecom Italia Mobile's (TIM) 25% stake in its mobile phone subsidiary, Mobilkom Austria for US$654 million in cash and US$24.6 million which TIM receives as dividend for the year 2001. The transaction gives Telekom Austria full control of Mobilkom Austria and is expected to close before the end of June 2002. There is no need for regulatory oversight of the transaction.

A further agreement has been signed that will enable TIM to sell up to 15% of Telekom Austria's share capital in a public market transaction in the second half of 2002. TIM will also loose its preferential partner shareholder rights once it has sold its shares, or by May next year if it still hasn't disposed of its holding anyway. The company had been prevented from selling any of its holding in Telekom until next year under a previous agreement that had granted TIM special privileges as a strategic partner of Telekom.

The Austrian government owns 47.8% of Telekom, through its holding company,

Posted to the site on 7th June 2002