Carlos Slim's América Móvil has made a bid to acquire KPN, the 160-year-old former Dutch telecoms monopoly, through a cash offer for the 70 per cent not already owned by the Mexican group.
Yesterday, América Móvil, the telecoms company controlled and chaired by the billionaire Mr Slim, offered €2.40 per share for KPN. This represents a 20 per cent premium to Thursday’s closing price of €2.
Before yesterday, KPN shares had lost half of their value in a year. Given that América Móvil already owns about 30 per cent of KPN, the bid would value the remaining stake in the company at about €7.2 billion. KPN said it would consider the offer.
The move follows an attempt by KPN to sell its German business E-Plus to Telefónica for €8.1 billion in cash and stock. However, at that price, the deal would crystallise some of the losses incurred by América Móvil in its ill-fated European acquisition drive, and was not supported by the Mexican group.
German deal
Its bid for the whole of KPN has therefore been described by some analysts as a means to push Telefónica into raising its price in the German deal, which will go before KPN's shareholders for approval long before the tender offer from América Móvil.
América Móvil said it was still deciding its view on the German transaction, and some analysts suggested it was significant that there was no attempt to end the deal in the conditions of its offer.
One person familiar with the situation said the move reflected a desire on the part of América Móvil to raise its stake in KPN, without necessarily seeking full ownership of the group.
KPN will work with América Móvil in the next few weeks to agree a package that is acceptable to shareholders, said one informed person.
Telefónica has also spoken to KPN following the América Móvil offer, according to those close to the companies. – (Copyright The Financial Times Limited 2013)
