Telekom Austria is reportedly set to hire Merrill Lynch to help bolster defences to ward off a hostile takeover bid from Egyptian tycoon Naguib Sawiris.
The telco could sign a contract with the investment bank in the next few days as it looks to widen…
Telekom Austria is reportedly set to hire Merrill Lynch to help bolster defences to ward off a hostile takeover bid from Egyptian tycoon Naguib Sawiris.
The telco could sign a contract with the investment bank in the next few days as it looks to widen its share buyback programme or secure a new investor to fend off hostile advances, reported local daily Wirtschaftsblatt.
Telekom Austria was unable to comment, but CEO Hannes Ametsreiter was cited on 3 October telling journalists that there was no indication of such stake building amongst its shareholders.
Sawiris, the owner of Egypt-based telco Orascom Telecom, could attempt a bid via Austrian investor Ronny Pecik, added the Wirtschaftsblatt report.
Earlier reports have suggested that Pecik is looking to acquire up to 20% of the Austrian telco for around E750m.
But, when these reports first surfaced in early September, Telekom Austria again pointed out that its shareholders are subject to stock exchange regulation, which requires them to declare the acquisition of significant stakes, specifically if their shareholding breaches certain thresholds (more than 5%).
Victory Industriebeteiligung, Pecik’s investment firm, was also unable to comment on the speculation. But the original Wirtschaftsblatt report cited Pecik denying the rumours.
In related news, Ametsreiter also told reporters that his group was not in talks to acquire France Telecom’s Austrian unit, Orange Austria.
He was cited saying that it is unlikely Telekom Austria could even be involved in the sale because of its market position as the country’s number one mobile operator.
