The Dutch government has sold a 12% stake in KPN for US$2.3 billion to the bank, Citigroup Global Markets. The government is now left with 19.4% of KPN and has pledged not to sell any more of its stake for at least one year, unless there are "certain exceptions". Citigroup Global Markets is due to then sell the stake in the open market.
KPN's share price has been affected by stock market fears that the government would sell more of its holding in KPN in order to help reduce the governments tax revenues deficit. The confirmation that no further sale can be expected for at least a year should help improve the company's share price.
The fact that KPN did not decide to buy the stake back itself fueled speculation that the company is conserving cash for a possible takeover of Germany's O2 network, although this was denied by the company over the weekend.
KPN nearly went bankrupt in 2001 after it amassed more than US$22 billion in debt buying 3G licenses throughout Europe."
Posted to the site on 22nd September 2003
Posted to: www.cellular-news.com/story/9759.php