Details of KPN's much anticipated €3 billion (US$3.9 billion) rights issue have finally emerged, as the debt-laden Dutch operator seeks ways of propping up its balance sheet in the face of tough competition in its home mobile market and elsewhere.
Dutch operator KPN said it will cancel its dividend for 2013 and 2014, at the same time confirming plans to press ahead with a €3 billion rights issue that was approved by shareholders earlier this month as a measure to reduce debt.
KPN said it may launch a €3 billion (US$3.9 billion) rights issue following its first-quarter results as the Dutch operator seeks new funding to support its future operations and reduce debt. Also as part of ongoing cost-saving efforts, Telefónica is interested in reopening talks with KPN on ways to bring their German businesses together, according to a report in the Financial Times .
KPN is considering the extent that its LTE network can be used to provide high-speed internet services to rural areas.
ZTE is to take a more substantial role in the LTE expansion of KPN's German operation E-Plus.
Vodafone's third-quarter service revenues fell 2.6 per cent, hit by poor results from across northern Europe and a slowdown in previously robust emerging markets.
Vodafone Netherlands and KPN separately announced job cuts in an effort to cut operating expenses.
The recent rumours that AT&T is mulling a European acquisition are based on the idea that the company can escape growth constraints within its home market and build fresh revenues elsewhere. But is Europe the right place to look?
AT&T is hunting for merger and acquisition opportunities in the European wireless market, according to a Wall Street Journal report, betting it can roll out LTE technology there faster and make more money from new pricing schemes. The report, which cited unnamed sources familiar with the matter, said AT&T executives are debating the wisdom of such a move, but that the United Kingdom, Germany or the Netherlands might be potential markets to explore for a deal.
The Netherlands' LTE spectrum auction raised an astonishing $5 billion (€ 3.8 billion), significantly more than the 480 million euros the Dutch government had expected to attract.