KPN ditches E-Plus spin off plan
KPN is abandoning attempts to spin off its German unit – a strategy it explored after America Movil tendered a bid to buy a 28% stake in the Dutch incumbent.
The telco has given up on the idea of a merger despite a review of the business highlighting high levels of synergies between the firm’s E-Plus business and other German operations. It states a deal cannot be agreed due to tough financial conditions, but maintains that America Movil’s €8 per share bid is too low.
KPN bosses are due to make an official announcement on the America Movil offer today.
The telco announced a review of its operations in Germany and Belgium on June 1, in an apparent bid to highlight that America Movil’s offer undervalues the firm.
KPN’s stock has failed to hit the €8 per share level since the bid was made, Bloomberg reports.