UPDATE 3-Takeover prospect Telekom Austria to freeze dividend for third year

miércoles 26 de febrero de 2014 10:13 GYT

* Dividend frozen at 0.05 euros/shr for 2014

* Slim, Austrian state could pool stakes by May 28 AGM - report

* Shares up 3 pct

By Georgina Prodhan

VIENNA, Feb 26 (Reuters) - Telekom Austria said on Wednesday it would freeze its dividend for the third year in a row this year, after reporting a further fall in quarterly sales and profits due to tough competition and regulatory pressures in its main markets.

But shares in the company, buoyed by reports that it could be the target of a takeover bid by Carlos Slim's America Movil , were up 4 percent at nearly 7.5 euros by 1411 GMT, their highest level since shortly after Slim first bought into the company in 2012.

On Tuesday Austria's economy minister said talks about creating a shareholder pact to pool Slim's 27 percent stake with the OIAG state holding company's 28 percent could be concluded within weeks.

Executives declined to comment at a news conference on Wednesday about the likelihood or desirability of Slim and its other major shareholder, the Austrian state holding company OIAG, pooling their shares - which would trigger a mandatory takeover offer.

Chief Executive Hannes Ametsreiter said it was for the major shareholders themselves to comment. "What we can say is that the operational cooperation with America Movil is very pragmatic, realistic, sensible and very good," he said.   Continuación...