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America Movil to reduce Telekom Austria stake

Staff Writer |
America Movil will cut its stake in Telekom Austria by 7.8 percentage points to just over 50 percent.

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The announcement came the same day that Citigroup said it was launching an issue of bonds exchangeable into 7.8 percent of Telekom Austria's shares, but America Movil statement made no link to that issue.

America Movil became the majority owner of Telekom Austria through a billion-dollar takeover offer in July 2014 that marked Mexican tycoon Carlos Slim's first successful venture into Europe.

When America Movil took control of Telekom Austria, Slim agreed to increase the free float of the former state monopoly within two years.

Under the agreement, America Movil has to increase Telekom Austria's free float by the end of the year to 20 percent, from around 12 percent currently.

As a result, America Movil is expected to reduce its 59.7 percent stake in Telekom Austria by September this year to fulfil its agreement with Austria's state holding company, which owns 28.4 percent of Telekom Austria.

America Movil said in a statement that it had agreed to reduce its Telekom holding to 51.89 from 59.7 percent, but the statement did not say how that would happen.

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