Telekom Austria AG, the phone company part-owned by Carlos Slim’s America Movil SAB, said first- quarter earnings fell 5 percent after regulatory cuts and lower traffic revenue reduced sales in its home market.
European stocks rose, rebounding from yesterday’s loss, as companies from Alstom SA to Telekom Austria AG rallied on mergers-and-acquisitions activity, while Russia resumed military drills along its border with Ukraine.
America Movil SAB is bidding as much as $1.96 billion to buy out Telekom Austria AG’s minority investors, seeking to cement control of the European phone carrier after striking a shareholder pact with the government.
Telekom Austria AG, one of two European phone companies part-owned by Carlos Slim’s America Movil SAB, posted fourth-quarter earnings that missed analysts’ estimates and forecast further revenue declines.
America Movil SAB won an agreement to share control of Telekom Austria AG with the government, triggering a bid of as much as 1.42 billion euros ($1.96 billion) for outstanding shares of the European phone carrier.
Telekom Austria AG and local units of Hutchison Whampoa Ltd. and Deutsche Telekom AG tightened their hold on the Alpine republic’s mobile-phone market in a spectrum auction that raised 2 billion euros ($2.7 billion).