VIENNA: America Movil aims to keep 24 percent of Telekom Austria listed on the Vienna Stock Exchange within two years of completing its takeover offer, the Mexican group's finance chief said.
"We will buy every share that is tendered," Carlos Garcia Moreno told Austria's News magazine. "If we get more than 50 percent of the shares, we will sell as many shares as necessary within two years to ensure this free float." America Movil, which owns 27 percent of Telekom Austria, has offered to buy the outstanding shares for 7.15 euros each in an offer that could cost it up to $2 billion.
The Austrian government owns 28 percent of Telekom Austria and intends to reduce this to 25 percent plus one share.
America Movil, controlled by Mexican billionaire Carlos Slim, has said it wants to use Telekom Austria as a hub for current and potential future operations in central and eastern Europe. It plans to inject up to 1 billion euros ($1.36 billion) into Telekom Austria through a rights issue, and Moreno said it wanted to buy more fixed-line businesses to complement its mobile operations. "We need more fixed-line capacities," he said.
"Telekom must be set up in all its markets like it is in Austria," he said, referring to Telekom Austria's combination of broadband and mobile offerings that sets it apart from its rivals in Austria. Moreno added that he personally would like a seat on Telekom Austria's supervisory board.
Under a deal agreed last month with the Austrian government to give America Movil operational control, it will have most Telekom Austria board seats.
"Yes, if I had the chance, I would be very glad to do it," Moreno said. Telekom Austria will hold its annual general shareholder meeting later on Wednesday.
The planned capital increase and future composition of the boards are not on the agenda but will likely be the subject of a extraordinary shareholder meeting to be called later.
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