Mexico-based operator América Móvil now owns 22.76 percent of Telekom Austria following the formal closing of a stock purchase agreement.

AM, Latin America's largest wireless service provider, has acquired 16.01 percent of TA’s shares to add to the 6.75 percent it previously held.

The deal marks further progress in AM’s European expansion, which in June saw it purchase 27.7 percent of shares in Dutch operator KPN.

The news helped to boost TA’s share price, which has fallen over 11 percent since the announcement that the company was cutting its dividend.

On Monday, it announced that it is lowering its dividend from €0.38 to €0.05 per share for 2012 and 2013.

The operator cited intensifying competition, an adverse economic environment and regulatory pressures in Austria and across Central and Eastern Europe as reasons for the decision.

“In this competitive environment, maintaining financial flexibility is of overriding importance,” it said in a statement.

TA, which has 23 million customers ineight countries, is having a tough time as it faces strong pricing competition in its main markets.

Last month, the operator revealed that its revenues had fallen by 4.9 percent during the first six months of 2012.