214;IAG Gets Go-Ahead to Complete Agreement With America Movil

By Nicole Lundeen 

VIENNA--Holding company Österreichische Industrieholding AG has been given the go-ahead to complete negotiations for a shareholder agreement with Mexican telecommunications company America Movil SAB, possibly paving the way for a takeover bid for the Austrian telecommunications company Telekom Austria AG, the holding company said Friday.

The move comes after weeks of informal talks between the holding company, also known as ÖIAG, and America Movil.

A linkup between Telekom Austria's two largest shareholders could trigger a mandatory takeover bid for Telekom Austria since their total holding would exceed the 30% threshold that in Austria necessitates an offer.

ÖIAG, which holds over 28%, said its supervisory board had been informed Friday about where talks currently stand with America Movil.

Although details weren't provided, ÖIAG said, the main points of any possible syndicate agreement would ensure Telekom Austria's headquarters remain in Austria over the long term as well as ensure that the ÖIAG's share isn't watered down to below 25% plus one share.

Further talks between the holding company and America Movil are planned for the coming weeks, the statement said.

America Movil, controlled by Mexican billionaire Carlos Slim, holds just under 27% of Telekom Austria's shares, directly and indirectly. America Movil, having exhausted merger-and-acquisition possibilities in Latin America, acquired a minority stake in Telekom Austria in 2012 as part of an expansion into Europe.

It later took a stake in Dutch carrier Royal KPN.

A takeover bid for KPN last year was unsuccessful, but Telekom Austria has been warm to America Movil's involvement.

Write to Nicole Lundeen at [e-mail]

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