AM cancels cap on KPN ownership; may seek to buy out company

29 Jul 2013

America Movil (AM), the single largest shareholder in Dutch telecoms group KPN Telecom (also known as Royal KPN), has reportedly cancelled an agreement which limited its holding to below 30%, suggesting it may launch a bid for control of the company. Reuters reports that AM, controlled by the billionaire Carlos Slim, was entitled to annul the so-called ‘standstill’ agreement after Telefonica of Spain launched a USD10.7 billion bid for control of KPN’s German mobile unit E-Plus, the Dutch company said today. Slim’s company is still considering whether or not to back the plan to sell E-Plus – seen by some as the jewel in KPN’s crown – although it is clear that AM has lost up to USD2.65 billion on its KPN investment since last year. The Mexican group is remaining tight-lipped on the suggestion it intends to trigger a mandatory buyout by breaking the 30% limit for that to happen.

Netherlands, America Movil (AM), KPN