KPN’s independent foundation has expressed concerns about America Movil (AMX)’s €7.2bn intended offer to take over the Dutch telco.
The Stichting Preferente Aandelen B KPN foundation, which has the power to block the deal, said in a statement that…
KPN’s independent foundation has expressed concerns about America Movil (AMX)’s €7.2bn intended offer to take over the Dutch telco.
The Stichting Preferente Aandelen B KPN foundation, which has the power to block the deal, said in a statement that “there is considerable uncertainty about America Movil’s intentions in light of its only briefly clarified announcement of its intention to make a public offer for the shares in KPN it does not already own”.
The foundation added that it is concerned about the Mexico-based telco’s position on KPN’s strategic development and proposed sale of German unit E-Plus to Telefonica Deutschland (O2) for €8.1bn.
Set up when the Dutch government first privatised KPN, Stichting is charged with representing the interests of the company and its associated entities and stakeholders.
In the Netherlands, foundations of this type have the power to block takeovers, generally by exercising a call option. This sees the target company issue a large number of preference shares, thereby diluting the holding of the unwanted bidder.
Ratings agency Fitch said last week that the foundation could at least delay AMX gaining control of KPN.
Carlos Slim’s AMX announced last Friday (9 August) that it intends to make a tender offer in cash for the close to 70% of KPN shares it does not already own. The €2.40 per share price tag values the target stake at about €7.2bn and the whole company at about €10.2bn.
The intended offer has cast doubt over whether KPN will be able to go ahead with the proposed sale of E-Plus to Telefonica for €8.1bn. AMX and other KPN shareholders will vote on the proposed deal at an EGM, expected to be called within the coming weeks. In its Friday statement, AMX said it is still carefully evaluating the proposed E-Plus deal and will make a final decision at the upcoming EGM.
