KPN fights losing battle with America Movil
Dutch incumbent KPN will sell off its Belgian business in July, however the decision couldn’t prevent América Móvil succeeding in a bid to up its stake in the telco.
The operator states proceeds from the sale of BASE will be pumped into improving its credit profile and financial flexibility, however it has yet to detail a timeline for the sale beyond stating that the process will start next month.
KPN’s decision came too late to stop América Móvil upping its stake in the telco from 8.7% to 21%, Bloomberg reports, however management is still urging shareholders to reject a €8 per share bid that would take the Mexican firm’s holding to 27.7%. “[T]he current and potential future value of KPN is not reflected in the unsolicited partial offer by América Móvil,” a company statement reveals.
América Móvil is increasingly interested in taking stakes in European telcos. Last week it increased its holding in Telekom Austria to 6.75% and tabled an offer that will lift that to 16% if accepted by the European telco’s shareholders.
The move is part of a trend of emerging markets players seeking to leverage tough trading conditions in Europe to increase their presence in the region, Ovum analysts state.