Austria’s finance ministry hit back at a report which said the country was preparing to sell its 28 per cent stake in Telekom Austria to America Movil, the operator’s majority owner.

The denial comes after Austrian newspaper Kurier reported that the country’s government was planning the sale to Carlos Slim’s America Movil, which already owns just under 60 per cent of the Austrian incumbent.

According to Reuters, a spokeswoman for the finance ministry said “there are no such plans”, in response to the claims. “There is nothing in this.”

It was initially reported that the Mexico-based operator group “signaled an interest in a total takeover”, including the 28 per cent of the operator held by state owned OBIB, which is reportedly worth approximately €900 million on current market prices.

The sale is seen as one of the “few possible sources of finance” for the ministry to fill the country’s budget gap and would also rid the problem of further capital increases at Telekom Austria for “cash strapped ministers”, reported Kurier.

The company last announced an anticipated €1 billion capital increase in November 2014, with America Movil and OBIB pledging commitment.

America Movil cemented majority control of Telekom Austria in July last year, and has indicated in the past it wants to ramp up its interests in Europe.

It also holds a stake in Dutch operator KPN.