KPN dismisses AM offer as too low

9 May 2012

Dutch incumbent KPN Telecom has reacted swiftly to rebut a surprise move by Mexico’s America Movil (AM) to increase its stake in the company, by saying its EUR3.2 billion (USD4.2 billion) offer substantially undervalues the company. The Mexican powerhouse, which is controlled by the billionaire Carlos Slim, is seeking to increase its stake in the Dutch group to 28% as it looks for fresh revenue streams in Europe – having nearly exhausted its opportunities for expansion in Latin America. Although the group has already built up a 4.8% holding in KPN, the Dutch telco has released a statement saying: ‘KPN is of the opinion that eight euros per ordinary KPN share substantially undervalues the company … KPN will seek further clarification as to America Movil’s intentions … In the meantime, KPN will explore all strategic options.’

Netherlands, America Movil (AM), KPN