Telekom Austria AG, the network operator that last week drew an investment from Mexican billionaire Carlos Slim, rose in Vienna after Erste Group advised investors that they should accumulate the stock.
Telekom Austria rose as much as 6 cents, or 0.8 percent, to 8.05 euros a share and traded at 8.048 euros at 9:26. a.m. in Vienna. Erste, which previously told clients to reduce their Telekom Austria holdings, raised the company’s target price by 10 percent to 9 euros a share.
The new recommendation is based on the “takeover fantasy” inspired by Slim’s commitment to take a 26 percent stake in the company, analyst Vera Sutedja wrote in a report published today.
“It is possible that America Movil will not stop at the current level of ownership,” Sutedja wrote, referencing Slim’s flagship company. “One buys into this stock with the expectation that another investor would buy at a higher price in the future to gain more control.”