VIENNA, May 15 (Reuters) - America Movil plans a 1 billion euro ($1.37 billion)capital increase for takeover target Telekom Austria in the second half of this year or the first half of 2015, it said in an offer document published on Thursday.
“The bidder (America Movil) and (Austrian state holding company) OIAG agreed to subscribe to a capital increase which shall take place either during H2 2014 or H1 2015, markets permitting,” it said.
OIAG, which has 28 percent of Telekom Austria, has agreed to participate as necessary to maintain a stake of at least 25 percent plus one share, it added.
“The bidder has agreed to participate pro-rata to its then current participation in Telekom Austria. Further, the bidder may take up shares for which existing shareholders have not exercised their subscription rights,” it said.
$1 = 0.7294 Euros Reporting by Georgina Prodhan and Angelika Gruber, Editing by Michael Shields