America Movil Raises Stake in Telekom Austria

MEXICO CITY--Mexican telecommunications heavyweight America Movil (AMX, AMX.MX) said Monday it obtained an additional 8.7% of Telekom Austria (TKA.VI) in an extended purchase offer, bringing its stake in the European company to around 59.7%.

The company controlled by billionaire Carlos Slim said an additional 38.4 million Telekom Austria shares were tendered since the initial buyout offer closed in July. The Mexican company reached agreement in April with Austrian government holding company Österreichische Industrieholding AG, or ÖIAG, to pool their stakes in the carrier.

America Movil plans to consolidate Telekom Austria in its results when it reports third-quarter earnings on Thursday.

While increasing its presence in Europe, America Movil is planning to sell assets in Mexico to avoid strict regulatory measures imposed on it as the dominant carrier in its home market. The measures include the elimination of mobile interconnection fees and domestic long-distance phone charges, as well as forced network sharing.

America Movil is paying EUR7.15 for each of the Telekom Austria shares.

Write to Anthony Harrup at [e-mail]

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