Telekom Austria to raise funds, chairman tells magazine
US-TELEKOMAUSTRIA-FUNDS:Telekom Austria to raise funds, chairman tells magazine
VIENNA (Reuters) - Telekom Austria is exploring ways to raise funds for hundreds of millions of euros in major investments it faces, Chairman Rudolf Kemler told Austrian magazine News.
In an interview published on Thursday, he cited a pending Austrian auction of new radio frequencies and the need to prolong existing frequency contracts.
"We presumably don't have (funds for this) in the Telekom group. That does not arise from current liquidity," he was quoted as saying.
"But we will employ capital market instruments. We have also authorized management to take steps on this."
Asked if he was referring to a hybrid debt issue of up to 800 million euros ($1.06 billion), Kemler said: "That is the range."
Telekom Austria officials have previously played down prospects of raising fresh capital or selling assets to cut debt faster.
($1 = 0.7553 euros)
(Reporting by Michael Shields; Editing by Hans-Juergen Peters)