Slim Wins Deal for Telekom Austria Control, Triggering Share BidAlexander Weber and Patricia Laya
America Movil SAB won an agreement to share control of Telekom Austria AG with the government, triggering a bid of as much as 1.42 billion euros ($1.96 billion) for outstanding shares of the European phone carrier.
After signing a shareholder pact with state holding company OeIAG, giving the partners a majority stake together in Telekom Austria, America Movil said it will offer 7.15 euros a share for the rest of the company. That price represents a 7.5 percent premium over yesterday’s closing price of 6.65 euros.
The agreement gives America Movil, controlled by billionaire Carlos Slim, a long-sought beachhead in Europe as it seeks to expand beyond Latin America. The company said it will vote for a 1 billion-euro capital increase by Telekom Austria to invest in the eight countries where it currently operates -- and possibly others in Central and Eastern Europe.
“This agreement provides the basis for future growth, continued innovation, and solid investment in Telekom Austria,” America Movil Chief Executive Officer Daniel Hajj said today in a statement. “It will also contribute to better position Telekom Austria as a more relevant player in the European telecommunication markets and to be in a position to benefit from growth opportunities in the region.”