Carlos Slim’s America Movil (AMX) has boosted its stake in Dutch telco KPN to 7.3% by buying 6 million extra ordinary shares at a lower price than its tender offer to acquire a 27.7% shareholding. The move increases pressure on KPN, which urges…
Carlos Slim’s America Movil (AMX) has boosted its stake in Dutch telco KPN to 7.3% by buying 6 million extra ordinary shares at a lower price than its tender offer to acquire a 27.7% shareholding. The move increases pressure on KPN, which urges investors to reject AMX’ offer, arguing it undervalues the company.
The Mexican telecoms group said its fully-owned subsidiary AMOV Europa entered into four separate transactions yesterday (11 June) outside regular market trading, paying €7.80 per ordinary share – less than the €8 per share it has offered KPN shareholders as part of its tender offer.
The four transactions involved the purchase of three million, one-and-a-half million, one million and 500,000 shares.
On 31 May, AMX entered into a similar transaction, boosting its stake in KPN from 4.8% to 5.01%, although it did not disclose the price it paid.
AMX now owns 104,532, 225 ordinary KPN shares and, under the terms of its tender offer, the maximum acceptance is 393,283,000 before closing on 27 June.
The fact that shareholders are willing to sell for €7.80 appears to contradict KPN’s view that even €8 per share would not be sufficient to reflect the true value of the company.
The move also increases pressure on short-term KPN investors to sell their shares to AMX now to avoid being left out of the offer altogether.
On 1 June, KPN issued a statement dismissing AMX’ offer as too low to warrant gaining a significant influence over the company and noted Slim’s company is unwilling to enter a shareholder agreement.
KPN has confirmed it is considering “strategic options” for the group and its Belgian and German units, BASE and E-Plus.
