VIENNA, July 23 Telekom Austria,
majority-owned by Carlos Slim's America Movil, called
an extraordinary shareholder meeting to approve a rights issue
and a new supervisory board.
The invitation issued late on Wednesday includes a proposed
resolution to increase the capital of Telekom Austria by up to 1
billion euros ($1.35 billion) through the issue of new shares.
The extraordinary meeting will take place on Aug. 14.
The move had been expected ever since Slim concluded a
shareholder agreement with Austria's OIAG state holding company,
previously Telekom Austria's biggest shareholder, that gave
America Movil operational control of the company.
America Movil said at the time it wanted the financial
flexibility to make acquisitions in central and southeastern
Europe, using Austria as a base, while maintaining Telekom
Austria's investment-grade credit rating.
Slim subsequently made a billion-dollar takeover offer for
the rest of Telekom Austria that resulted in America Movil's
owning 50.8 percent of the company.
The invitation also proposed the election of a new
supervisory board, of whom eight would be America Movil nominees
and two chosen by the OIAG, as agreed in the shareholder pact.
America Movil finance chief Carlos Garcia Moreno would be
among the new board members. Chairman Rudolf Kemler would stay
on as one of the OIAG nominees, though not necessarily as chair.
It also proposed a general settlement with two former
executives, Rudolf Fischer and Stefano Colombo, whom the company
was pursuing for damages following various criminal cases
involving share-price manipulation and covert party financing.
($1 = 0.7429 Euros)
(Reporting by Georgina Prodhan; Editing by Hugh Lawson)