America Movil won't launch hostile bid for Telekom Austria

|About: America Movil SA de CV (AMX)|By:, SA News Editor

A month after withdrawing its $10.7B bid for Dutch carrier KPN following stalled negotiations, America Movil (AMX +1.4%) is ruling out a hostile bid for 23%-owned Telekom Austria (TKAGY -3.1%). Many have expected AMX to make a play for another European carrier following its failure to acquire KPN.

Daniel Hajj, Carlos Slim's son-in-law, says AMX will remain a "stable partner" for Telekom Austria, but wasn't clear on whether or not the Latin American mobile giant would maintain or raise its stake if/when Telekom Austria goes through with an expected capital raise.

The Austrian government owns 28% of Telekom Austria, and has said it wants to keep a stake of at least 25%.