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America Movil agrees bid to take control of Telekom Austria
2014-04-24 09:46:00| Telecompaper Headlines
(Telecompaper) America Movil announced plans to launch a takeover bid for the rest of Telekom Austria, as part of a proposed shareholders agreement with the Austrian state. The Mexican company already holds 26.8 percent of the shares and plans to offer EUR 7.15 per share for the remaining shares not held by OIAG, the state holding company that will maintain 25 percent plus one share in Telekom Austria. The operator's stock rose almost 7 percent to the bid price the day after the agreement was struck. In addition to the blocking stake, the state maintained the right to nominate the CEO and chairman of Telekom Austria, as well as guarantees on maintaining the head office in Austria, the group's Austrian brands, the quality of the network and the stock listing on the Vienna exchange. America Movil will gain operational control of the group and agreed to support its share of a EUR 1 billion rights issue to increase the operator's capacity for investment and possible acquisitions in eastern Europe. The rights issue will take place after the public bid; both still require regulatory and shareholder approval. The shareholders pact between America Movil and the state will run for ten years, with an option for a five-year extension.
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Category:Telecommunications