KPN has announced that talks regarding the potential sale of its Germany-based mobile subsidiary E-Plus have been terminated.

The Netherlands-based operator announced E-Plus was up for sale earlier this month in a bid to fend off a takeover bid by América Móvil.

It is thought KPN was in talks with Telefonica about merging E-Plus with O2 in Germany.

But KPN said in a statement that no agreement about “the potential significant synergy value which can be created through in-country consolidation” could be reached due to “the current adverse conditions in financial markets”.

The statement continued: “KPN has an even stronger belief that there is significant value embedded in the German market, and is convinced that other parties share this view.”

However, it left the door open for further talks by stating that no agreement could be reached “at this point in time”.

The company reiterated its line that AM’s offer significantly undervalues KPN.

It added that it would publish a position statement on Friday.

Earlier this week, AM increased its shareholding in KPN to 23 percent.