New reports are circulating that Spain's Telefonica is considering buying Holland's KPN. A Telefonica-KPN deal would provide a competitive advantage in Germany where Telefonica's O2 and KPN's E-Plus battle rival operators T-Mobile and Vodafone.
KPN has a market capitalization of about 22 billion euros ($35 billion), about a quarter of the size Telefonica. This report follows last week's news that France Telecom was mulling a bid for TeliaSonera.
- see this MarketWatch report
What's behind FT's interest in TeliaSonera and Telenor? TeliaSonera story