Austria Telekom denies MTS takeover report

22 Jul 2010

According to newspaper reports, Telekom Austria has established an internal working group in order to evaluate a potential purchase offer from Russian telco MTS. Although the report, printed in Austrian Financial newspaper WirtschaftsBlatt, has been denied by both Telekom Austria and the Austrian government, the paper insists that the Russians made a concrete offer to acquire Telekom Austria several weeks ago. WirtschaftsBlatt goes on to report that Austrian Finance Minister Josef Proell asked the company to examine the pros and cons of a potential deal. Chairman of the employee representatives association Markus Hinker, said that he was upset by these rumours – just days after the company completed the merger of its wireline and wireless units. He insisted that employees would oppose any sale of the company, as it would threaten hundreds of jobs.

Austria, A1 Telekom Austria Group, Mobile TeleSystems (MTS)