KPN not negotiating with Belgacom - report

Royal Dutch KPN is not in talks with Belgium's dominant telco, Belgacom, about a possible tie-up, reacting to stories in the Belgian press, a Dow Jones report said.

"We are currently not in talks with Belgacom. This seems like a typical political affair and something that has to be sorted out between the Belgian government and Belgacom management. We are not involved in any way," a KPN spokesman, quoted by Dow Jones, said.

The Belgian government is still a key shareholder in Belgacom, holding over 50% of its shares, the report said.

KPN and Belgacom held talks about a possible merger in 2001, but the deal collapsed.

At the time, an agreement could not be reached on key terms of the merger, the Dow Jones report further said.