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.