America Movil Ends Shareholder Truce with KPN
Published on: 29th Jul 2013
Note -- this news article is more than a year old.
Mexico's America Movil has terminated the shareholder agreement it had with Netherlands based KPN, and is now free to increase its stake in the company again.
It had been suggested in recent days that the Mexican firm, which built up a hostile 28% stake in KPN last year, was unhappy with KPN's decision to sell its German subsidiary, E-Plus.
In a statement, KPN said that following the termination of the Relationship Agreement the standstill has also ended. America Movil may now increase its shareholding above 30% -- although it would then also be required to launch a full takeover bid if it did so.
The two companies came to a truce only in February this year, and while KPN was locked into the agreement for two years, the deal allowed America Movil to walk away with just two-months notice.
The two America Movil designees in KPN's Supervisory Board will remain in place as long as the Mexican firm holds 20% or more of KPN's share capital.
KPN shares jumped as much as 5 percent on the news as the company is increasingly looking like a takeover bid target to allow America Movil to expand into Europe.