By Anthony Harrup
MEXICO CITY--Mexican telecommunications heavyweight América
Móvil SAB said Wednesday it will make a bid to acquire outstanding
shares in Telekom Austria after reaching a shareholder pact with
the Austrian carrier's largest shareholder, government holding
company Österreichische Industrieholding AG.
The agreement cements the move into Europe by Mexican
billionaire Carlos Slim, whose company bought minority stakes in
2012 in Telekom Austria and Royal KPN of the Netherlands.
América Móvil sees in Europe an opportunity for geographic
diversification, having exhausted its acquisition possibilities in
Latin America, where it's the largest mobile phone provider and
faces growing regulatory pressures in a number of markets including
Mexico.
Telekom Austria confirmed the agreement between América Móvil
and ÖIAG, but gave no details.
ÖIAG holds over 28% of Telekom Austria, and América Móvil owns
around 27%. By forming the agreement, the two own over 30%,
triggering a mandatory takeover bid for Telekom Austria under
Austrian law. At the offer price, the remaining shares of Telekom
Austria would cost América Móvil more than 1.4 billion euros.
América Móvil said that through its unit Carso Telecom, it will
make an offer for all outstanding shares of Telekom Austria that
aren't owned by ÖIAG or by itself, at 7.15 euros per share. América
Móvil said it would "obtain operational responsibilities" in
Telekom Austria, without giving further details.
ÖIAG said late last month that any syndicate agreement would
ensure Telekom Austria's headquarters remain in Austria over the
long term, and that ÖIAG's stake isn't watered down to below 25%
plus one share.
América Móvil said that it and ÖIAG agreed to support a
1-billion-euro capital increase at Telekom Austria, which will
strengthen its capital structure and finances, allowing the company
to invest in infrastructure, research and development, and to take
advantage of investment opportunities in emerging markets in
central and Eastern Europe.
América Móvil Chief Executive Daniell Hajj said in a release
that the partnership "provides the basis for future growth,
continued innovation, and solid investment in Telekom Austria."
América Móvil's takeover bid for KPN last year was
unsuccessful.
Nicole Lundeen in Vienna contributed to this article
Write to Anthony Harrup at anthony.harrup@wsj.com
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