Boston, MA 06/19/2014 (wallstreetpr) – Austria’s telecoms regulator (RTR) approved the deal to pool over the shareholding pattern between Carlos Slim’s America Movil and the Austrian government (OIAG) in Telekom Austria.
In April 2014, America Movil SAB de CV (ADR) (NYSE:AMX) announced the public tender offer for all outstanding shares of Telekom Austria. Both Slim and OIAG agreed to pool their stakes and together hold 55% of the stake in Telekom Austria.
Hind Side Of The Deal
The Chamber of Labour confirmed that the OIAG Board members approved the agreement without the consent of the association. So, they may go through the legal actions, but, it long term dissatisfaction will affect both the Company as well as workers.
America Movil SAB de CV (ADR) (NYSE:AMX) also believes that workers’ group of OIAG will not challenge the pact as the state holding company holds a stake in Telekom Austria along with America Movil.
Austria’s Financial Market Authority is also evaluating the deal for any irregularities as Telekom Austria’s Paybox Bank unit is holding a banking license.
Create Intense Competition
The deal may trigger the competition as the Mexican billionaire Slim have the controlling authority that he may consolidate his position in Europe.
According to RTR, the shareholding pattern will not affect the competition as there is no technical impact with respect to frequency sharing. The frequencies have already distributed among the subscribers and will not through any changes.
In addition, Austria’s Federal Competition Agency has already given a green signal to the pact.
America Movil SAB de CV (ADR) (NYSE:AMX) is the leading provider of wireless services in Latin America and is the third largest in the worlds in terms of subscribers. The Company had 272.2 million wireless subscribers and more than 31 million fixed line services as of March 31, 2014, America Movil SAB de CV (ADR) (NYSE:AMX) had 70.7 million fixed revenue generating units across the Americas. The addition of ownership over Telekom Austria will further increase its customer base globally.