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Last Trade - 21/06/21

Sector
Telecoms
Size
Large Cap
Market Cap £36.31bn
Enterprise Value £60.26bn
Revenue £35.59bn
Position in Universe 260th / 6942

KPN shares slide after it rejects takeover offers

Mon 3rd May, 2021 9:21am
AMSTERDAM, May 3 (Reuters) - KPN  KPN.AS  shares lost almost
4% in early trading on Monday after the Dutch telecoms company
said it had rejected two unsolicited takeover offers in recent
weeks.
    The company on Sunday said that said it had rejected
approaches from U.S. investment firm KKR  KKR.N  and another
from a private equity consortium comprising EQT AB  EQTAB.ST 
and Stonepeak Infrastructure Partners, saying they had failed to
provide "tangible and material added value". urn:newsml:reuters.com:*:nL1N2MP07X
    Reports of possible interest in the largest telecoms
provider in the Netherlands have surfaced repeatedly for months,
driving up KPN's share price by about 45% since early October
despite resistance from the company and the Dutch government
against any foreign takeover.
    Chief Executive Joost Farwerck on Friday said he was not
looking to sell the company, pointing out that it was investing
in infrastructure for the first time in 26 years.  urn:newsml:reuters.com:*:nL1N2MN0PM
    KPN clearly has "the intention to quell takeover rumours,
(and has) no intention to be sold", ING analyst David Vagman
wrote in a note.
    Apart from KPN's own resistance, efforts to buy KPN will
need the approval of the Dutch government, which has the power
to block any telecoms takeover it deems a threat to national
security.
    But other analysts said that fear of government intervention
might not stop some parties from trying.
    "Regarding EQT/Stonepeak, we believe it may not be their
last attempt to pursue a takeover", KBC Securities said, adding
that KPN would be the right fit for the suitors, which already
have stakes in other telecoms businesses.
     EQT already owns the Netherlands' second-largest fibre
optic network, DeltaFiber, and could use it as a vehicle to buy
parts of KPN's fibre business and extract some cost
efficiencies, a source close to the matter told Reuters in
November.  urn:newsml:reuters.com:*:nL1N2HY1OB
    The Dutch ministry of Economic Affairs on Monday said it
could not comment on individual companies but that Dutch telecom
companies were already providing the investment in digital
infrastructure it desires.   urn:newsml:reuters.com:*:nS8N2JI07F
    KPN has a strong defence against unwanted takeovers bids by
virtue of a foundation that can build a controlling stake to
block any deal. 
    This proved successful in 2013, when KPN won a lengthy
battle against a takeover attempt by Mexico’s America Movil
 AMXL.MX , which owns 20% of KPN shares.
    America Movil has described its investment as "financial".
  
    

 (Reporting by Bart Meijer and Toby Sterling
Editing by David Goodman)
 ((Bart.Meijer@thomsonreuters.com; +31 20 504 5006; Reuters
Messaging: bart.meijer@thomsonreuters.com))
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