Shareholders Demanding KPN Board Shakeup Before Approving Rights Issue
Published on: 13th Feb 2013
Note -- this news article is more than a year old.
By: Ian Mansfield
KPN's plans to raise EUR 4 billion (USD5.4 billion) from shareholders in a rights issue may cost the company's CEO his job if Mexico's Carlos Slim has his way.
Carlos Slim - though America Movil has built up a 28 percent stake in the Dutch firm against its wishes and is reported to be seeking significant changes in the board of directors, including the removal of the CEO, Eelco Blok.
Citing people familiar with the discussions, Bloomberg News added that America Movil will almost certainly not participate in the rights offer unless at least some conditions are met, though the specifics haven't been decided.
The struggling company is turning to shareholders to raise the EUR4 billion to help bring its EUR12 billion of debt down to a more manageable level. However the move would also dilute the holdings of any companies that don't participate, which could be an added incentive for KPN if America Movil declines to join in the rights issue.
Neither company have commented on the report.
On the web: Bloomberg News