KPN may drop Telfort buy

10 Aug 2005

Dutch telco KPN has revealed that it is prepared to walk away from its proposed acquisition of local rival Telfort if it runs into opposition from the country’s competition watchdog. In an interview with the Financial Times, KPN’s CEO Ad Scheepbouwer says he does expect the EUR1.1 billion takeover to get the green light, but he says that any demands for “major remedies” could scupper the deal. A decision from the regulator is expected by November according to the FT.

Meanwhile, KPN has reported a slight rise in second quarter revenues to EUR2.95 billion, from EUR2.91 billion in the same period of 2004. Profits were down, however, as the company continues to see faltering returns from its fixed line division and it invests in new technologies. Quarterly operating revenues were down 3.5% at KPN’s wireline unit, although the mobile division did show a 9.7% improvement.

Netherlands, KPN, Telfort