KPN share buyback hits mmO2

11 Mar 2004

Royal KPN has launched a bid to buy back up to EUR500 million in its own shares – around 3% of the company – as part of its plan to dispose of any unused cash balances. However, the move dented the possibility of the Dutch telco mounting a takeover for UK cellco mmO2, causing the UK company’s share price to fall by 3.6% to GBP1.06 at close yesterday. Early this week mmO2 shares hit a high of GBP1.17 as rumours intensified that KPN was preparing to table a revised bid.

Netherlands, KPN, Telefonica O2 Europe