Dutch Regulator Clears KPN Takeover Of Telfort

AMSTERDAM -(Dow Jones)- The competition regulator Nederlandse Mededingings Autoriteit Tuesday said it has cleared Royal KPN NV's (KPN) takeover of smaller Dutch mobile operator Telfort BV.

"There is no reason to believe a takeover will seriously hamper competition in the market for mobile phone services," the regulator said in a statement.

On June 29, KPN said it wanted to buy the Dutch low-cost operator Telfort for as much as EUR1.12 billion to strengthen its position as market leader in the Netherlands.

The regulator said that the takeover does strengthen KPN's position in the Dutch market. The NMa, however, said the other network operators in The Netherlands belong to large international companies "which are capable of competing with KPN."

The deal will give KPN, which currently controls 38% of the Dutch mobile phone market, a 53% share. U.K. carrier Vodafone Group PLC (VOD) has 23%, Deutsche Telekom AG (DT) unit T-Mobile International AG (TMO.YY) 14% and France Telecom SA's (FTE) Orange 10%.

A spokesperson for Orange and Vodafone declined to comment on the ruling by the competition watchdog. T-Mobile wasn't immediately available to comment.

The Dutch mobile phone market is one on the most competitive in Europe with five mobile phone operators. Analysts have welcomed a consolidation of the market to end destructive price wars.

-By Stefan Simons, Dow Jones Newswires; 31 20 6260770; stefan.simons@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 30th August 2005