Austria and Carlos Slim’s America Movil (AMX) are close to finalising a shareholders pact for Telekom Austria, with the head of state holding company OeIAG saying it could happen as early as mid-April.
Rudolf Kemler told journalists in Vienna that a…
Austria and Carlos Slim’s America Movil (AMX) are close to finalising a shareholders pact for Telekom Austria, with the head of state holding company OeIAG saying it could happen as early as mid-April.
Rudolf Kemler told journalists in Vienna that a term sheet with the pact’s key details will probably be presented to the holding’s board by 28 March, and a 10-year contract with AMX finalised two to three weeks later.
While there is no final agreement, Kemler said talks so far give cause for optimism.
AMX wants to boost its current 26.8% stake in the Austrian incumbent to more than 30% so it can consolidate the company. This would trigger a mandatory takeover offer under Austrian law, the terms of which are still being discussed, according to Kemler.
OeIAG has a 28.4% stake in TA and wants to retain a blocking 25% holding.
Preparations for a shareholder pact first leaked in February, when excerpts of a draft document appeared in the public domain. This document, prepared by AMX’s lawyers, would grant OeIAG the blocking minority stake in return for agreeing to co-operate with the Mexican telco going forward. AMX would make an offer for all outstanding TA shares and invest €750m via participation in a capital increase.
However, an Austrian report last week said AMX would be prepared to inject up to €1.5bn.
According to this later report, OeIAG and AMX’s talks were in danger of falling apart, saying the former had insisted on far-reaching veto requirements and begun drafting its own shareholders agreement.
