Telekom Austria EGM approves 1 bln eur rights issue

VIENNA Thu Aug 14, 2014 7:29am EDT

VIENNA Aug 14 (Reuters) - Telekom Austria's shareholders approved a 1 billion-euro ($1.34 billion) rights issue on Thursday backed by the company's two major owners, America Movil and Austria.

The motion was supported by 98.1 percent of shareholders voting at an extraordinary general meeting, at which a new supervisory board dominated by America Movil representatives was also approved.

America Movil has said it wants to use Telekom Austria as a base for further expansion into central and eastern Europe, where Telekom Austria already has operations in six countries including Bulgaria and Croatia.

The capital is intended to reduce Telekom Austria's debt and to give it firepower for acquisitions. (Reporting by Georgina Prodhan; Editing by Michael Shields)

Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.