KPN expects Carlos Slim to keep stake in Dutch group

KPN said it expects Carlos Slim to retain his stake in the Dutch group despite the recent failed attempt by the Mexican billionaire to gain control of KPN via América Móvil.

In late October, the group said it remained on cooperative terms with América Móvil and said talks with the group could resume, although KPN made it clear that América Móvil's €7.2 billion ($9.7 billion) offer was too low.

Speaking at the Morgan Stanley Technology, Media & Telecom Conference in Barcelona, KPN CEO Eelco Blok said the talks had failed over price, but he believes the Mexican-based company will hold on to its almost 30 per cent stake because it made financial sense to do so.

"Looking at where the share price is today, looking at our expectations of the financial performance of KPN, taking into account the average price they have for their current 29.7 percent stake, I think they will keep their stake," Blok said, Bloomberg reported.

In separate Dutch news, Tele2 has said it may consider selling its older fixed-line assets in the country as it builds up its LTE network in the Netherlands, Bloomberg reported. "We are weighing our options," CEO Mats Granryd said during the Morgan Stanley conference. "What we have seen in the third quarter is an acceleration of the fixed line being less attractive."

Granryd said the company could either sell its consumer fixed-line business or upgrade it with fibre to offer faster home Internet access. Ultimately, the Sweden-based company sees itself as primarily a mobile company.

In the Netherlands, KPN, T-Mobile NL and Vodafone NL are the three main mobile network operators.

For more:
- see this Reuters article
- see this Bloomberg article
- see this separate Bloomberg article

Related Articles:
KPN slashes capex, says on cooperative terms with América Móvil
KPN could restart talks with América Móvil
América Móvil withdraws bid for KPN
KPN, Vodafone, T-Mobile and Tele2 bid €3.8B in Dutch LTE auction

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