KPN’s supervisory and management boards have recommended that shareholders reject América Móvil’s offer to purchase 27.7 percent of the Dutch operator.

In a statement, KPN said the opportunistic bid, which was announced last month, is too low to gain significant influence over KPN and substantially undervalues the company on a standalone basis.

“We are convinced América Móvil is not offering a fair premium,” said CEO Eelco Blok.

AM currently owns 4.8 percent and offered €8 a share for a higher stake.

However, KPN said that by attempting to keep its ownership below the mandatory public offer threshold, AM was potentially deterring other third parties from making an offer for the whole of KPN in the future.

Added Blok: “Unfortunately, AM is not willing to enter into a shareholder agreement and also did not respond positively to our proposals.”

On announcing their offer, AM said they supported the strategic plans of KPN's management and hoped to explore potential areas for co-operation.

Responded Blok: “They do not need to have significant influence at KPN’s shareholders’ meeting to jointly explore commercial opportunities.”

KPN also announced that its German mobile arm E-Plus is now up for sale.

E-Plus is Germany’s third largest mobile operator with around 19 million subscribers.

This follows the April announcement that KPN is looking to sell its Belgian mobile outfit BASE.

"The overarching aim of exploring strategic options is to unlock superior value for the holders of all our shares" concluded Blok.

More News

Ericsson partners with Pegasystems, updates inventory solution Ericsson partners with Pegasystems, updates inventory solution Ericsson has joined forces with Pegasystems in a bid to improve the customer experience that operators offer their subscribers. More detail
Nokia makes cloud infrastructure play to cash in on telco transformation Nokia makes cloud infrastructure play to cash in on telco transformation Nokia has entered the cloud infrastructure market as it looks to capitalise on the transformation of telcos into virtualised businesses. More detail
Belgacom speeds up Proximus rebrand Belgacom speeds up Proximus rebrand Belgium’s incumbent operator has speeded up its rebranding to the Proximus name. More detail
Alcatel-Lucent trials G.Fast in Japan Alcatel-Lucent trials G.Fast in Japan Alcatel-Lucent has conducted the first field trials of G.Fast in Japan with Energia Communications (EneCom). More detail
Telefónica finally closes deal for GVT after shareholder approval Telefónica finally closes deal for GVT after shareholder approval Telefónica Brasil shareholders have approved the operator’s acquisition of GVT, meaning the deal for the fixed line player has now closed. More detail
    

This website uses cookies to improve your experience. Using our website, you agree to our use of cookies

Learn more

I understand

About cookies

This website uses cookies. By using this website and agreeing to this policy, you consent to SJP Business Media's use of cookies in accordance with the terms of this policy.

Cookies are files sent by web servers to web browsers, and stored by the web browsers.

The information is then sent back to the server each time the browser requests a page from the server. This enables a web server to identify and track web browsers.

There are two main kinds of cookies: session cookies and persistent cookies. Session cookies are deleted from your computer when you close your browser, whereas persistent cookies remain stored on your computer until deleted, or until they reach their expiry date.

Refusing cookies

Most browsers allow you to refuse to accept cookies.

In Internet Explorer, you can refuse all cookies by clicking “Tools”, “Internet Options”, “Privacy”, and selecting “Block all cookies” using the sliding selector.

In Firefox, you can adjust your cookies settings by clicking “Tools”, “Options” and “Privacy”.

Blocking cookies will have a negative impact upon the usability of some websites.

Credit

This document was created using a Contractology template available at http://www.freenetlaw.com.