(Adds details on start of capital hike, banks involved in transaction)
MEXICO CITY/VIENNA, Nov 6 (Reuters) - Mexican tycoon Carlos Slim's America Movil plans to subscribe to Telekom Austria's upcoming capital increase proportional to its shareholding in the company, Chief Financial Officer Carlos Garcia Moreno said on Thursday.
"In the capital increase, we're committed to subscribing to the part that's proportionate to us in terms of our shareholding," Garcia Moreno said in an email.
Telekom Austria, in which Slim holds a 59.7 percent stake, is set to launch its long-awaited 1 billion euros ($1.24 billion) cash call before the end of the year. Austrian state holding company OIAG with its 28.4 percent stake has said it did not want its stake to be diluted in the capital hike.
America Movil has said it wants to use Telekom Austria as a base for further expansion into central and eastern Europe, where Telekom Austria already has operations in six countries including Bulgaria and Croatia. The fresh capital aims to reduce debt and give the group firepower for acquisitions.
Telekom Austria's board is set to meet on Friday to give the formal green light to the capital hike, people familiar with the matter have told Reuters.
Should both Slim and OIAG make full use of their rights, this would leave around 119 million euros for the market.
America Movil became the majority owner of Telekom Austria through a billion-dollar takeover offer in July that marked Slim's first successful venture into operating in Europe. Shares of Telekom Austria plunged after America Movil's extended offer for the Austrian company closed last month.
They hit their lowest since January on Thursday, closing down 0.88 percent at 5.849 euros. America Movil's shares were trading at 16.34 pesos, down 0.67 percent, at 1710 GMT.
Deutsche Bank, Citi, Raiffeisen, Erste Group and Bank Austria are running the transaction, the sources said. (Reporting by Dave Graham in Mexico City, Angelika Gruber and Shadia Nasralla in Vienna and Arno Schuetze in Frankfurt; Editing by Simon Gardner, Bernard Orr)