KPN sees value in German consolidation

18 Nov 2011

The CEO of Dutch telecoms company KPN has said that a merger between its German subsidiary E-Plus with Telefonica Germany (O2) – the country’s third and fourth largest mobile operators by subscribers, respectively – could make sense, but stressed that neither KPN nor Telefonica are willing to sell their German units. ‘There is clearly value to be created in in-country consolidation in Germany,’ news agency Reuters cites Eelco Blok as saying at the Morgan Stanley TMT Summit in Barcelona. He added: ‘So far it’s not happening. We are not sellers of E-Plus, we are convinced that with our strategy we can create value and Telefonica is also not willing to sell. (But) if the price is right and Telefonica are willing to sell, then it could be an interesting scenario. We have the management in Germany that has proven that it can run an asset far better than the others.’ Meanwhile, also speaking at the Barcelona conference, Telefonica’s CFO Angel Vila said the company has no intention to sell its German subsidiary, which the Spanish group has ‘the full intention to continue developing, organically.’

Germany, E-Plus Group, KPN, Telefonica Deutschland Holding