América Móvil prepared to ditch KPN deal
América Móvil is threatening to drop its bid to acquire Dutch telco KPN, after the latter’s shareholders moved to block the deal.
The Mexican telco revealed it is prepared to walk away from the €7.2 billion deal in a statement responding to a move by KPN’s foundation to stop the transaction proceeding by increasing its holding of preference shares B. América Móvil denies the foundation’s claims its bid for the Dutch telco is akin to a hostile takeover noting it has worked closely with KPN’s board to improve it’s performance since becoming its largest minority shareholder in June 2012.
“In the event that the Foundation maintains its current position and seeks to prevent the offer from proceeding to the detriment of KPN’s customers, employees and shareholders, and also to the detriment of telecommunication services in the Netherlands, all of whom America Movil firmly believes will benefit from the offer, America Movil is prepared to withdraw its offer,” the Mexican telco states.
KPN’s foundation claims América Móvil made its move without consulting the Dutch telco’s board – a claim América Móvil denies – and states it acted to “safeguard the interests of KPN and its stakeholders.”
The foundation’s move comes just after América Móvil committed to backing the sale of KPN’s German subsidiary, E-Plus, to Telefonica – a major rival to the Mexican telco in its core Latin American markets.
América Móvil tabled its offer for KPN in early August, casting doubt on whether the E-Plus sale would go ahead.