VIENNA May 2 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)