America Movil says expects Telekom Austria deal approval in 4-8 weeks
MEXICO CITY (Reuters) - Latin America's biggest phone company America Movil expects regulators to approve its deal to take control of Telekom Austria within two months, the company said on Wednesday.
America Movil (AMXL.MX), controlled by billionaire Carlos Slim, agreed last week to invest up to 1 billion euros ($1.38 billion) in the former state monopoly Telekom Austria (TELA.VI) via a rights issue. It will also spend as much as $2 billion to buy out minority shareholders in a mandatory public offer.
"We are expecting the regulatory approvals to be in place anywhere in the next four weeks, eight weeks probably," America Movil Chief Financial Officer Carlos Garcia Moreno told a conference call to discuss first-quarter results.
He said that he expected the tender offer to launch in the next two to three weeks and said it should be outstanding for some time, depending on regulatory approvals.
"We need to see how we go about with the capital raise, potentially it could also be done in parallel," Garcia Moreno added.
He said that the capital raise was not contingent on the tender offer.
Shares in America Movil fell 1.59 percent on Wednesday, the day after it announced a steep drop in its first-quarter profit.