UPDATE 1-Telekom Austria extends CEO's contract
* CEO Ametsreiter gets at least three more years at helm
* Supervisory board approves extension unanimously
* Shares up 1 pct in line with European sector
VIENNA, Feb 27 (Reuters) - Telekom Austria's supervisory board unanimously decided to extend Chief Executive Hannes Ametsreiter's contract for three years with an option to prolong it for another two years, the company said on Wednesday.
Ametsreiter's current contact expires at the end of 2013. The 46-year-old has been group CEO since April 2009.
Chairman Rudolf Kemler said the move was an important sign of continuity at the group, calling Ametsreiter one of the most experienced telecoms managers in Austria and abroad.
Telekom Austria has warned on profits and slashed its dividend since Mexican telecoms tycoon Carlos Slim agreed to take a major stake last June.
Its shares were trading above 8 euros at the time but now change hands around 4.86 as it battles fierce competition.
Oscar van Hauske Solis, an executive in Slim's America Movil Latin American telecoms group, is a member of Telekom Austria's supervisory board, so unanimous backing for Ametreiter signals Slim's blessing.
Telekom Austria stock was up 1 percent by 1417 GMT, in line with the European sector index.
Austrian state holding company OIAG is Telekom Austria's biggest shareholder with a 28 percent stake. Slim and America Movil hold 26 percent directly and indirectly.
Hutchison Whampoa's takeover of France Telecom's Orange Austria has shown scant signs so far of taking the pressure off Austrian market prices although the deal cut the number of rival network operators to three.
Telekom Austria last month warned of a further fall in revenue this year, saying tough conditions would continue to weigh on margins as industry consolidation in its cut-throat home market fails to end a price war.