America Movil Signs Deal to Take Control of Telekom Austria


Maxico's America Movil is launching a takeover bid for the Telekom Austria Group with secure an agreement with the Austrian government's own holding company IAG.
America Movil and ÖIAG have initially signed a shareholders’ agreement to effectively pool their stakes in the telecoms company into a single syndicate.
America Movil already owns 26.4% of the company, while the government owns 28.4% of the telco.
Now that the agreement, which had been expected, has been signed, the two companies jointly control more than 30% of the shares and are required by Austrian stock market rules to launch a takeover bid for the company.
Subject to the closing of the takeover bid, the two shareholders will also pump an additional EUR1 billion into the company to help fund network upgrades.
America Movil will take over management of the company, although it is expected that the Austrian government would, through ÖIAG remain the larger of the two shareholders. ÖIAG also has the right to nominate the CEO and Chairman of the company.
Telekom Austria currently operates in Austria, Belarus, Bulgaria, Croatia, Serbia, Macedonia, Liechtenstein and Slovenia.
Post Date 24-April-2014



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