America Movil Launches Full Takeover Bid for KPN
Published on: 9th Aug 2013
Note -- this news article is more than a year old.
Mexico based America Movil has finally launched its long expected bid to buy Netherlands based KPN, offering to buy the 70% of the company that it doesn't already own for around EUR7.2 billion (USD9.6 billion).
Some sort of bid was expected to be tabled imminently after America Movil broke a shareholder truce between the two companies last week which had prevented the Mexican firm from increasing its stake in KPN.
The Intended Offer price of EUR 2.40 per share implies a premium of approximately 35% over the average closing price of KPN's ordinary shares on Euronext Amsterdam for the last 30 trading days.
The offer is subject to America Movil securing at least 50% of the shares in the company, which would give it management control of the firm.
KPN says that it was informed in advance and will carefully consider América Móvil's offer. KPN's share price has jumped to EUR2.35 on the news, just under the takeover bid price.
America Movil is itself still deciding if it will support the decision by KPN to sell its German subsidiary E-Plus to Telefonica, and said that it will consider its options ahead of the KPN shareholder vote on that decision.
The company was however widely reported to be unhappy with that deal, which it felt undervalued the German asset -- and would also have curtailed its ambitions to build up a series of networks across Europe.
America Movil also owns a large stake in Telekom Austria, and had been rumoured to be interested in buying UK based EE.