Mexican telecoms firm América Móvil on Monday cancelled an agreement with Dutch peer KPN not to acquire more than 30% of KPN shares.

América Móvil currently has a 27.7% stake in the Dutch firm. If the stake reaches 30%, the Mexican group will be forced to bring out an offer for the entire company.

It is not clear if América Móvil is planning to raise its stake above that figure, reports Nos television.

Last week, KPN sold its successful German subsidiary E-Plus to Spanish telecoms company Telefónica for €8.1bn. According to insiders, this was the reason América Móbil cancelled the agreement, says the Nos.

The sale makes KPN smaller but more financially healthy, which could encourage a takeover. But the Mexican group could also decided to decrease its stake now KPN has left the lucrative German market.