Telekom Austria moves to deflect eastern Europe rumours

30 May 2013

Telekom Austria Group has denied reports that it is planning further expansion in eastern Europe with major shareholder Carlos Slim in the driving seat. Since he took a 22.76% stake in Telekom in 2012, speculation has been rife that his growing boardroom influence would prompt the Austrian group to transfer its existing eastern European assets into a new holding company to allow the Mexican magnate to inject more capital into the non-Austrian aspects of the business – believed to be his key area of focus. Answering a shareholder’s question at the company’s annual general meeting, board member Rudolf Kemler clarified: ‘There are no concrete plans for an eastern Europe expansion, and we are not planning to set up a holding company. If Telekom Austria would need extra capital for an acquisition then we would have to see, but that’s not an issue at the moment’.

Austria, A1 Telekom Austria Group