By Nicole Lundeen

VIENNA--Telekom Austria AG's (TKA.VI) new ownership structure has been given regulatory approval, the Austrian broadcasting and telecommunications regulator said Tuesday, bringing the telecoms provider's second-largest shareholder, America Movil (AMX), one step closer to using the company as a springboard for expansion into Eastern Europe.

At a meeting on June 16, the Telekom Control Commission approved the new ownership structure created last month through a shareholder agreement between Telekom Austria's two largest shareholders--the Mexican telecommunications heavyweight America Movil and the Austrian government; through its holding company Oesterreichische Industrieholding AG. The regulator said the new structure wouldn't impede competition in Austria and didn't present any technical problems.

The shareholder agreement, which gives America Movil operative control of Telekom Austria while guaranteeing that the company will remained headquartered in the Alpine country, triggered a mandatory takeover offer for Telekom Austria's remaining shares. As part of the offer, America Movil is offering to buy approximately 197.9 million shares, or just under 45% of Telekom Austria's share capital, for 7.15 euros ($9.69) per share.

The takeover offer began on May 15 and will run for eight weeks.

Write to Nicole Lundeen at nicole.lundeen@wsj.com

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