Mexico’s Movil bids to buy 28% of Dutch telecoms firm KPN

Mexican company America Movil has made an offer of €8 a share to take over a 28% stake in former Dutch state telecoms monopoly KPN.

America Movil, owned by the world’s richest man Carlos Slim, already owns 4.8% of the Dutch firm and sees the bigger stake as a way of breaking into the European market, according to media reports.
Under Dutch merger and acquisition rules, shareholders with a stake of more than 30% in a Dutch firm are required to make a formal takeover offer.
The €8 a share represents a premium of more than 23% on KPN’s closing price in Amsterdam on May 7.
KPN booked sales of €13bn in 2011 and has operations in the Netherlands, Belgium, Germany, France and Spain.
KPN said in April it will speed up its ongoing reorganisation after first quarter net profit and turnover both declined and would now shed the planned 4,000 to 5,000 jobs by next year, rather than 2015.
European position
The offer will give the Mexican firm a significant stake in a company ‘with a relevant position in European markets’, news agency Dow Jones quoted America Movil as saying.
America Movil is the biggest provider of wireless telephony in Latin America and had 246 million subscribers by the end of March, Dow Jones said.

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