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AMOV - America Movil SAB De CV News Story

$15.29 0.2  1.3%

Last Trade - 21/06/21

Large Cap
Market Cap £36.15bn
Enterprise Value £60.10bn
Revenue £35.58bn
Position in Universe 260th / 6924

UPDATE 1-EQT holds out hope for KPN after rejection, sources say, but shares slide

Mon 3rd May, 2021 3:18pm
* KPN shares fall as deal seen less likely
    * Company's equity valued around 12.6 billion euros
    * Government repeats it can block undesirable takeover
    * Source: private equity firm EQT still hopes for talks

 (Recasts with comment from sources, analysts; background)
    By Bart H. Meijer, Toby Sterling and Arno Schuetze
    AMSTERDAM, May 3 (Reuters) - Sweden's EQT is still
interested in buying Dutch telecom KPN, two sources familiar
with the matter said on Monday, even as shares in the company
slid after it rejected the private equity firm's takeover
    KPN said on Sunday the proposal by EQT AB and another by KKR
of the United States, which it has also rejected, lacked merit.
Separately the Dutch government repeated it has the power to
block unwanted takeovers of telecommunications
    KPN shares  KPN.AS  were around 3% lower at 2.78 euros by
1355 GMT, valuing the Netherlands' largest telecommunications
company at 12 billion euros.
    Speculation about private equity interest in KPN has driven
its share price about 45% higher since early October.
    The people familiar with the matter said EQT still believes
KPN might be willing to entertain a plan that would enable it to
invest more heavily in infrastructure.
    EQT would not have demanded dividends, which KPN pays to its
shareholders every year, and would have been willing to spend 4
billion euros on network investments, they said.
    But KPN, which is already investing 3.5 billion euros to
build its fibre optic networks over the coming three years, said
in its statement that EQT's proposals would not provide
"tangible and material added value".
    It said its boards had considered the interest of not only
shareholders but also "customers, employees, creditors and
bondholders, suppliers, business partners, government and Dutch
society at large."
    EQT declined to comment. 
    The Dutch government said on Monday it was aware of the
offers for KPN, which competes with VodafoneZiggo and T-Mobile
in the Dutch market, but would not comment on individual
    However it added it was satisfied with current investment
plans by the country's telecoms operators. 
    "The Netherlands is not for nothing at the top of lists in
international comparisons of digital infrastructure and we'd
like to keep it that way," the Economic Affairs Ministry said in
a statement.
    KPN Chief Executive Joost Farwerck on Friday said he was not
looking to sell the company, pointing out that it is well-funded
and investing heavily in infrastructure for the first time in 26
    He cited both KPN's own plans and its joint venture with
pension fund giant ABP launched in March to rollout fibre to
rural areas.
    KKR reached a 700 million euro fibre deal with T-Mobile
Netherlands in March, meaning its plans for KPN may be obsolete,
a senior telecoms banking industry source said.*:nL1N2M00AO 
    KKR declined to comment. 
    Farwerck said it would be difficult for KPN to further
accelerate the rollout given limitations on the number of
streets it could work in at one time and the availability of
labour and equipment.
    EQT owns the Netherlands' second-largest fibre optic
network, DeltaFiber, and had hoped to combine it with KPN's, a
source close to the matter previously told Reuters.*:nL1N2HY1OB
    But KPN's publication of the EQT and KKR approaches showed
it wants "to quell takeover rumours, (and has) no intention to
be sold", ING analyst David Vagman wrote in a note.
   America Movil, which tried to buy KPN in 2013 but failed on
the company's poison pill defences, retains a 20% stake, which
it describes as "financial" and not strategic.
($1 = 0.8300 euros)

 (Reporting by Bart Meijer, Toby Sterling and Arno Schuetze
Editing by David Goodman, Kirsten Donovan)
 ((; +31 20 504 5006; Reuters
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