Telekom Austria AG named Alejandro Plater chief executive officer after the Austrian state didn’t select a new candidate for the post, ceding more control to majority owner America Movil SAB.
Plater, an Argentine former Ericsson AB manager and currently chief operating officer of Telekom Austria, will succeed Hannes Ametsreiter on Aug. 1, the company said Friday. The company’s management board will be reduced to two members from three, it said.
“We created a clear and cost-conscious management structure,” Chairman Wolfgang Ruttenstorfer said in the statement. Plater’s contract period remains unchanged and runs until March 2018, with an option for two more years, Telekom Austria said.
Plater, 47, was nominated to Telekom Austria’s management board by Carlos Slim’s America Movil in March. Under a shareholder contract agreed between the Mexico City-based company and the Austrian state, Austria could have picked a new CEO. The Austrian state holding company said that Plater’s promotion was a “pragmatic solution.”
Ametsreiter, who served as Telekom Austria’s CEO since 2009, is leaving to join Vodafone Plc as the head of the British operator’s German unit in October.
Slim has invested at least 2.5 billion euros ($2.7 billion) in Telekom Austria since he bought an initial stake in 2012. Revenue at Austria’s biggest phone operator has continued to slide since then, as competition at home added to regulatory cuts and sluggish economies in its eastern European markets.
America Movil owns 59.7 percent of Telekom Austria, which it also plans to use as a base for expansion in eastern Europe. The Austrian state holds 28.4 percent.
Telekom Austria shares fell 2.2 percent to 6.05 euros at 3:15 p.m. in Vienna, while the Stoxx 600 Telecommunications Index rose 0.8 percent.