A recovery in the markets where Telekom Austria operates will deliver an enterprise value that is higher than the public offer made by America Movil, according to the Austrian operator’s management and supervisory boards.

However the boards concede that if market recovery is slightly delayed then the resulting enterprise offer is lower than America Movil’s offer price.

“As a result, the management board is refraining from giving an explicit recommendation regarding acceptance or rejection of the public offer”.

Elsewhere in the management board’s statement, it said its stance is “neutral” towards the offer. The supervisory board adopted the statement of the management board.

Both statements were made in accordance with Austria’s Takeover Act.

Earlier this month, America Movil made an offer of up to $2 billion for the shares it does not already own in Telekom Austria. This follows the shareholder pact it struck with state holding company OIAG.

America Movil holds a 27 per cent stake in Telekom Austria which, together with the 28 per cent stake held by OIAG, means it controls 55 per cent of the group.

A key assumption in management’s calculations is that a “sustained” market recovery will occur in Austria, Bulgaria and Croatia where Telekom Austria operates.

A recovery is also dependent on an improvement of the economic climate in southeast Europe, said management.

Separately, America Movil’s CFO Carlos Garcia Moreno told News magazine that it wants to see a 24 per cent free float of Telekom Austria shares on the Vienna Stock Exchange within two years of completing its offer to buy the shares it does not already own in the operator.