Carlos Slim’s America Movil (AMX) is keeping its options open concerning its investment in KPN following its failed takeover bid for the Dutch telco.
AMX CEO Daniel Hajj said late last week on a conference call with analysts that the company will take…
Carlos Slim’s America Movil (AMX) is keeping its options open concerning its investment in KPN following its failed takeover bid for the Dutch telco.
AMX CEO Daniel Hajj said late last week on a conference call with analysts that the company will take its time to make a decision on what to do with the minority stake.
“I’m happy today with the 29%, yes, but I want to keep open my alternatives,” he said. “And if we feel that the company is doing good, and we feel that, then 29% is a good investment, then we can stay there.”
Later, Hajj said that reducing or increasing the stake in KPN are both options.
According to French newspaper le Journal du Dimanche citing sources, Slim recently held informal talks with Stephane Richard, the CEO of French incumbent Orange, about KPN. Orange recently got the go-ahead from the French government, which has a 27% stake in the operator, to try and grow further in Europe.
The Mexican telco dropped its €7.2bn (US$9.6bn) takeover bid for KPN earlier this month after the foundation charged with protecting the Dutch telco’s stakeholders exercised a poison pill giving it a 50% minus one voting interest in the company. Announcing its withdrawal of the takeover offer, AMX accused the foundation of making the deal “impossible”.
The withdrawal prompted speculation that the Mexican telco may seek to exit its investment in KPN entirely.
Hajj stressed that the KPN situation has no bearing on its other European investment – a 23.7% stake in Telekom Austria – or assets in Latin America.
Asked whether AMX would prefer to invest in Europe or Latin America, the CEO said the company is open to all alternatives. However, he identified Eastern Europe and Brazil as “interesting markets”. He also noted that AMX will be disciplined on pricing wherever it chooses to invest.
“AMX will be good financially if we decide to grow even more in Europe or even more in Brazil or more in Latin America,” he said.
