KPN CEO: German Mobile Unit E-Plus Undervalued By Market

AMSTERDAM -(Dow Jones)- Royal KPN, Tuesday said the company's German mobile operator is undervalued by the market.

"There's still a lot of hidden value in E-plus which is not yet fully appreciated by the market," KPN's Chief Executive Ad Scheepbouwer said at the company's annual general meeting of shareholders in Amsterdam.

Scheepbouwer added that another part of KPN that is undervalued is its fixed-line division.

The fixed-line division accounted for 58% of KPN's EUR11.9 billion 2005 sales. The unit has suffered customer losses for years as consumers either rely solely on mobile phones or turn to telecommunications services offered by cable companies.

"Some people think that the sales decline will never end, but this division will return to growth again in the coming years," Scheepbouwer said, without giving an exact timeframe.

KPN has been named by some analysts as a takeover target within the European telecommunications sector.

Scheepbouwer said that the interest of KPN's shareholders will have a high priority in any takeover plan, adding that "KPN will not be a cheap takeover target."

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

(END) Dow Jones Newswires "

Posted to the site on 11th April 2006