UK PRESS: KPN CEO: Won't Buy Telfort If Regulator Objects

NEW YORK -(Dow Jones)- Royal KPN NV (KPN) will walk away from the EUR1.1 billion acquisition of Telfort, its fast-growing domestic mobile rival, if the Dutch regulator intervenes, Chief Executive Ad Scheepbouwer told the Financial Times for an article on the paper's Web site Tuesday.

Scheepbouwer insisted he is optimistic that the watchdog would approve the takeover, which will lift KPN's share of the Dutch mobile market to 43%, but he told the FT that any demands for "major remedies" would force him to abandon the deal.

Scheepbouwer believes the regulator should base its deliberations on the number of mobile competitors in the market rather than KPN's overall market share, according to the FT report.

A decision is expected by November, the FT said.

(END) Dow Jones Newswires"

Posted to the site on 9th August 2005