Carlos Slim Makes KPN Move
Mexican Telecom America Movil Already Has Minority Stake in Dutch Company
By ANTHONY HARRUP
MEXICO CITY—Mexican telecommunications heavyweight America Movil SAB AMX.MX +1.59% said Friday that it plans to make a buyout offer for Dutch carrier Royal KPN NV, KKPNY +1.32% seeking to take control of the European company in which it took a minority stake last year.
America Movil, controlled by Mexican billionaire Carlos Slim, is aiming to cement its foothold in the European market, which it entered last year with minority stakes in KPN and Telekom Austria AG, TKA.VI +8.16% having exhausted its possibilities for acquisitions in Latin America where it is the largest mobile phone operator.
The offer is €2.40 a share and in a release the company said the planned offer price for KPN, of which it currently owns 29.77%, represents about a 35% premium over the average price of the shares over the past 30 trading days. The bid values KPN at €10.25 billion ($13.72 billion).
Mexican telecommunications tycoon Carlos Slim spoke during news conference at the Soumaya museum in Mexico City, Jan. 14, 2013.
"More than a year after its initial investment in KPN, America Movil's objective is to acquire a majority stake in KPN in order to facilitate greater operational cooperation and coordination between the two companies, to exploit all areas for potential partnerships and to intensify the realization of synergy potential for both companies," America Movil said.
America Movil added that it recently explained the proposed transaction to KPN representatives, and has invited KPN's Supervisory Board and Board of Management to meet "as soon as possible" to further discuss the offer and "potential terms for a long-term constructive relationship."
KPN said it would carefully consider the proposed buyout offer and all other strategic options.
Among the conditions of the planned offer, which requires Dutch regulatory clearance, is that America Movil should obtain more than 50% of KPN's voting rights. The Mexican company said it expects to start the offer in September.
While Telekom Austria welcomed Mr. Slim aboard, KPN objected to the investment and the relationship between the two partners has been complicated.
Last month, America Movil ended an agreement not to increase its stake in KPN to 30% or more after the Dutch company agreed to sell its German mobile business E-Plus to Telefónica Deutschland, a unit of Spain's Telefonica SA TEF.MC -0.78% which competes with America Movil in Mexico and across Latin America. The Mexican company said it is still evaluating the planned sale of E-Plus and has yet to decide how it will vote.