VIENNA, Oct 17 (Reuters) - Telekom Austria is likely to conduct its planned 1 billion euro ($1.28 billion) capital increase before the year is out if market conditions allow it, two sources close to the situation told Reuters on Friday.
“The capital increase is expected this year,” one source said, while another spoke of a “relatively quick” move to implement the rights issue that shareholders approved in August. Main owners America Movil and Austria back the plan.
The company, which has a market capitalisation of around 3 billion euros, declined comment.
America Movil has said it wants to use Telekom Austria as a base for further expansion into central and eastern Europe, where Telekom Austria already has operations in six countries including Bulgaria and Croatia. The fresh capital aims to reduce debt and give the group firepower for acquisitions.
1 US dollar = 0.7833 euro Reporting by Angelika Gruber; Editing by Michael Shields