The Freeland File
Global Market Data
Tales from the Trail
Lucy P. Marcus
David Cay Johnston
The Great Debate
Jack & Suzy Welch
Macro & Markets
Lipper Awards 2012
Personal Finance Video
Counterparties: Today's Best Links
Another debt ceiling debacle could sink the economy
Last year's Congressional debt standoff hurt consumer confidence more than the collapse of Lehman Brothers, Betsey Johnson and Justin Wolfers write. This time could be worse. Read more at Counterparties
A guide to the end of the eurozone
The investor who outsmarted JPMorgan
Sign up for the Counterparties newsletter!
Dewey files for Chapter 11 in record law firm collapse
29 May 2012
Facebook shares plumb new depths, valuation questioned
29 May 2012
Obama honors Dylan, other "heroes" for their influence
29 May 2012
Biggest Greek bank warns of dire euro exit fallout
29 May 2012
Romney clinches Republican 2012 nomination in Texas
Romney tells vets dangerous world demands powerful military
Iran has enough uranium for five bombs: expert
Protests planned after minister calls for gays to be fenced in
A look at the UK’s most beautiful face
Thu, May 10 2012
Volcano covers Colombian cities in ash
Tue, May 29 2012
Cruise ship crunch
Sat, May 26 2012
Mexico's Slim sticks to offer in raid on KPN
UPDATE 2-Mexico's Slim sticks to offer in raid on KPN
Tue, May 29 2012
Analysis: Slow and steady Mexico draws equity bets over Brazil
Fri, May 25 2012
UPDATE 3-Telekom Austria investor Pecik happy to stay put
Wed, May 23 2012
UPDATE 2-Telenet eyeing joint bid for KPN's BASE -sources
Tue, May 22 2012
Mexico's Slim eyeing Telekom Austria stake: report
Fri, May 18 2012
Analysis & Opinion
Road shows, analysts and jumping the gun: the Facebook IPO
Global Deals Review: 2011 Q3 »
Global Deals Review: 2011 Q2 »
Global Deals Review »
Inflows Outflows »
Mexican tycoon Carlos Slim speaks during the opening of the World Travel and Tourism Council's The Americas Summit in Playa del Carmen, May 17, 2012.
Credit: Reuters/Victor Ruiz Garcia
By Cyntia Barrera and Leila Abboud
MEXICO CITY/PARIS |
Wed May 30, 2012 12:39am EDT
MEXICO CITY/PARIS (Reuters) - Mexican tycoon Carlos Slim stuck to his bid of 8 euros per share for a bigger stake in Dutch telecom firm KPN on Tuesday as his mobile phone giant America Movil hinted it was moving closer to a tie-up with its European target.
America Movil, which has little left to snap up in Latin America, officially launched its offer and said it could pay some $3.25 billion for the 325 million KPN shares it wants to buy from current stockholders.
The billionaire's cash cow is seeking its first stronghold in Europe and already holds a 4.8 percent stake in KPN.
The official tender offer for Slim's bid, which was initially announced on May 7, seeks to boost America Movil's stake in the Dutch firm to no more than 27.7 percent.
America Movil said in a filing that it had indicated to KPN on April 10 that it was considering the purchase of a significant stake in the Dutch firm and the two sides kept in contact.
On May 7, America Movil Chief Executive Office Daniel Hajj called his KPN counterpart Eelco Blok to inform him of the Mexican company's intention to launch its bid prior to the public announcement. The two companies held more meetings and video conferences after that, one as recently as May 25.
"AMX and KPN exchanged information on potential cooperation, including ... in the areas of handset procurement, procurement of other hardware and iBasis," the filing said.
A KPN company, iBasis is a carrier of international calls using voice over Internet protocol, according to its website.
America Movil sent a letter to KPN last week repeating its aim to create a "long term relationship" between the two firms.
Dutch financial regulations stipulate that anyone with 30 percent of voting rights in a company must make a formal takeover bid for all remaining shares.
KPN shares, which have declined 35 percent in the past year, closed at 7.59 euros on Tuesday.
The company, which has said Slim's offer undervalues its assets, has hired JP Morgan and Goldman Sachs to advise it on its strategic options.
A KPN spokesman said that the group was studying the offer and did not have any further comment.
America Movil's offer will be good from Wednesday through June 27 and could be extended, the company said. America Movil's Chief Financial Officer Carlos Garcia Moreno told a conference call the company had no plan to raise its offer for KPN.
Slim has been looking to Europe to expand his communications empire. In addition to the bid for KPN, he also may be looking at Telekom Austria, according to media reports. America Movil operates from the United States to Argentina and over the past two years has looked at buying telecoms operations in Serbia and Poland.
If successful, the deal could give America Movil seats on KPN's supervisory board.
The Dutch telecom has been grappling with tough competition in its home market and a lack of scale in its foreign markets.
The company, which has a 45 percent market share in the Netherlands in fixed line and mobile, has been hit by a string of problems under Blok, who has faced criticism from analysts, regulators, politicians and the public.
Nick Brown, an analyst at Espirito Santo, echoing the opinion of someone close to the situation, said he wasn't surprised that America Movil had not raised its price.
"They believe it's a reasonable offer at 24 percent premium to the KPN price before the announcement. There is nothing KPN can do to stop shareholders from accepting it, although it can try to convince them that selling off the Belgium and Germany businesses would be worth more."
(Reporting By Cyntia Barrera Diaz, additional reporting by Leila Abboud and Arno Schuetze; Editing by Leslie Gevirtz, Gary Hill and Richard Pullin)
Global Deals Review: 2011 Q3
Global Deals Review: 2011 Q2
Global Deals Review
Related Quotes and News
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Back to top
New York Legal
Support & Contact
Connect with Reuters
Our Flagship financial information platform incorporating Reuters Insider
An ultra-low latency infrastructure for electronic trading and data distribution
A connected approach to governance, risk and compliance
Our next generation legal research platform
Our global tax workstation
About Thomson Reuters
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.