U.S. Markets close in 6 hrs 7 mins

Slim pact for Telekom Austria possible by May-paper

VIENNA, Feb 26 (Reuters) - Carlos Slim's America Movil and the Austrian government could strike a deal by May to pool their stakes in Telekom Austria, a newspaper reported on Wednesday.

Austria's economy minister had said on Tuesday a syndicate pact could be done within weeks, leading to a takeover offer for other shareholders and marking a further step in the Mexican tycoon's expansion in Europe.

Die Presse said that according to its sources a timetable was already in place, with the best-case scenario envisaging the deal's being done by the company's annual meeting on May 28, which could also approve an expected capital increase.

An alliance would hold 55 percent of Telekom Austria - 28 percent from state holding company OIAG and 27 percent from America Movil - and ensure Austria keeps a major say in strategic matters at the country's leading telecoms group.

Telekom Austria has declined to comment on issues it says are for its major shareholders to decide and has said there is no immediate need for a capital increase.

It said earlier on Wednesday it would keep its dividend at 0.05 euros ($0.07) a share for 2014, a third year running, as sales continued to fall amid tough competition in core markets.