Slim secures funding for KPN bid, as date gets set for vote on E-Plus deal

Carlos Slim's América Móvil said it has secured the necessary funds to fully finance its €7.2 billion ($9.6 billion) bid for KPN.

In a statement, América Móvil said it has entered into binding credit facilities subject to customary conditions with undisclosed "reputable global financial institutions" regarding the full financing of the intended offer.

The Mexican-based operator said earlier this month that it plans to buy the 70 per cent of KPN that it does not already own, in a move that also raised questions about Telefónica's earlier €8.1 billion bid for KPN's German business, E-Plus. KPN's independent foundation, which has the power to block a hostile takeover, said last week that it's concerned that América Móvil isn't being clear about its intentions.

Separately, the Dutch operator has set Oct. 2 as the date for an extraordinary general meeting relating to the sale of E-Plus to Telefónica Germany. The two operator giants plan to merge their respective German businesses in order to create a stronger competitor to Deutsche Telekom and Vodafone Germany. There are fears that América Móvil, which currently holds 30 per cent of KPN, will not support the merger, and reports have said Slim regards the offer made by Telefónica as too low.

KPN said that only those holding KPN shares as of Sept. 4 would be eligible to vote at the EGM.

Germany's Federal Cartel Office (Bundeskartellamt) has already indicated that the proposed tie-up of the German units will require close scrutiny and said it believes this task should come under the purview of the German regulator and not the European Commission, Reuters reported.

"It is evident that such a combination would have a considerable impact on competition and will have to be investigated closely in all its facets," the office's president, Andreas Mundt, told Frankfurter Allgemeine Zeitung (FAZ) in a report to be published on Wednesday, Reuters added.

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

Related Articles:
Carlos Slim faces first hurdle over KPN bid
Slim's €7.2B move on KPN raises questions about E-Plus deal
América Móvil free to raise stake in KPN
Telefónica gets positive signals over E-Plus deal, reports reduced debt
KPN, Telefónica to merge German units in survival plan, but hurdles lie ahead

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