Telco ownership veto bill presented to parliament; looks bad for Brookfield’s KPN proposal

6 Mar 2019

The Netherlands’ State Secretary for Economic Affairs Mona Keijzer has presented a bill to parliament which, if implemented, will allow the government to stop or even reverse takeovers of Dutch telecoms firms for reasons of national security or ‘public order’. A report on SeekingAlpha notes that the development is likely to affect the chances of a proposed leveraged buyout of Dutch national telco KPN by Canada’s Brookfield Asset Management, quoting a MainFirst analyst telling Bloomberg that such a bill being passed ‘probably destroys hopes’ of a foreign KPN buyout.

TeleGeography notes that Brookfield recently entered preliminary talks with Dutch pension funds PGGM and APG Groep about partnering on a bid for KPN. Back in 2013 the telco’s minority shareholder America Movil of Mexico failed in a hostile takeover bid after an independent foundation committed to the protection of KPN shareholders’ interests stepped in to block it.

Netherlands, Brookfield Infrastructure Partners, KPN