Discussions between Telekom Austria’s key shareholders America Movil (AMX) and state holding OeIAG over pooling their shares are close to falling apart, according to a local report.
Austrian daily Kurier reported OeIAG insists on far-reaching veto…
Discussions between Telekom Austria’s key shareholders America Movil (AMX) and state holding OeIAG over pooling their shares are close to falling apart, according to a local report.
Austrian daily Kurier reported OeIAG insists on far-reaching veto rights and has begun work on its own draft shareholder agreement.
But America Movil considers the draft unacceptable and is under the impression that OeIAG is interested in a capital injection AMX would make in TA, but does not want to give it more decision making powers.
Preparations for a shareholder pact first leaked in February, when excerpts of a draft document appeared in the public domain. This document, prepared by lawyers working for America Movil, would grant OeIAG a blocking minority of 25.01% in TA. In return, the state holding would agree to co-operate with AMX going forward.
America Movil would make an offer for all outstanding TA shares, and would invest €750m via participation in a capital increase.
Today’s article in Kurier said the Mexican operator would be prepared to inject up to €1.5bn.
AMX has also offered a number of sweeteners, such as promises to keep TA listed in Austria, to invest in infrastructure and to improve the telco’s position in the CEE region.
The shareholder pact would be agreed for a period of 10 years, with an optional five-year extension.
