America Movil doesn't rule out Telekom Austria capital hike for expansion

jueves 8 de enero de 2015 06:02 GYT
 

* America Movil bought 60 pct of Telekom Austria in 2014

* America Movil to use Telekom Austria for Europe growth

* Telekom Austria raised 1 bln euros in November

VIENNA, Jan 8 (Reuters) - Telekom Austria's majority shareholder does not rule out a further capital increase to fund European acquisitions, according to a newspaper interview published on Thursday.

Mexico's America Movil wants to use the business, in which it bought around 60 percent last year, for further expansion into central and eastern Europe, though Telekom Austria told Reuters last month it had little room to buy new assets.

America Movil's Chief Financial Officer Carlos Garcia Moreno told Austrian magazine News on Thursday he expected several years of consolidation in the European telecommunication market.

"If there are opportunities for Telekom (Austria) to grow through acquisitions, the situation will be judged accordingly and the topic (of a) capital increase will also be considered," he said.

America Movil fully supported a 1 billion euro ($1.2 billion) capital increase conducted by Telekom Austria in November to reduce debt and invest in infrastructure.

Part of America Movil's strategy could be to bring together Telekom Austria businesses in different countries under a single brand, Moreno said. Telekom Austria operates in Austria, Macedonia, Belarus, Croatia, Bulgaria, Slovenia, Serbia and Liechtenstein.

($1 = 0.8464 euros) (Reporting By Angelika Gruber and Shadia Nasralla; editing by John Stonestreet)