VIENNA, May 2 (Reuters) - Standard & Poor's put Telekom Austria on credit watch positive on Friday after America Movil said it would offer to buy Telekom Austria's outstanding shares and support a 1 billion-euro ($1.39 billion) capital increase.
S&P said the move reflected the possibility of an upgrade within the BBB category if it assessed Telekom Austria as at least "moderately strategic" for America Movil, making it more likely to benefit from its financial support, or if the capital increase would be used primarily for debt reduction.
The credit ratings agency currently rates Telekom Austria BBB/A-3, and assesses Telekom Austria to be a "non-strategic" subsidiary for America Movil.
America Movil sealed a deal last week with the Austrian government to take control of Telekom Austria.
For the full text of the S&P announcement, please click on r.reuters.com/zam98v. ($1 = 0.7212 Euros) (Reporting by Georgina Prodhan; Editing by Elaine Hardcastle)