OIAG looking at Telekom Austria split

12 May 2008

Austria’s state holding company OIAG has unveiled a plan to split the country’s dominant phone operator, Telekom Austria, into two publicly-listed independent units to cover fixed and mobile services. A report from local newspaper Der Standard says OIAG has already put the proposals to the government, and these would see Telekom Austria shareholders being offered one share in each of the new wireline and wireless units in return for each Telekom share they currently hold. The state would retain a blocking minority interest in both companies. The plan would mean job cuts, but OIAG is keen to see those Telekom employees with civil servant status reallocated to other government departments. OIAG has a 23.37% stake in Telekom Austria, which offers cellular services under the name mobilkom.

Austria, A1 Telekom Austria, A1 Telekom Austria Group