Austria denies Telekom Austria share sale report

Austria's finance ministry denied a newspaper report saying it was preparing to sell its 28 percent stake in Telekom Austria to the company's majority owner America Movil reports Reuters citing a spokeswoman from the ministry. The report came from Austrian newspaper Kurier, claiming that the Finance Ministry was making preparations for the sale after America Movil, which owns 59.4 percent of the company, expressed an interest in buying the country's stake. 

The paper cites unnamed source within the ministry claiming that America Movil has expressed interest and the interest is kept quiet due to the controversial nature which could infuriate the union and works council representative on TA's board. Potential issues in the event of the state's exit include the 4,500 civil servants still working at the company, assigned under the Postal structure law. If the government's share drops below 25 percent of Telekom Austria, that assignment becomes obsolete. which means America Movil can send the civil servants back to the government. 

The newspaper claims that the Austrian government could use the money from a possible sale, which amounts to EUR 900 million at the current share value, for closing its budget gap.