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 nicole.lundeen@wsj.com
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