Telefonica's backer sets stage for Royal KPN takeover
In a surprise move, Carlos Slim's America Movil SAB gave its 'irrevocable commitment' to vote in favor of KPN's E-Plus unit's sale to Telefonica Deutschland Holding AG. Telefonica SA received th support from Slim in its bid to acquire Royal KPN NV's German mobile-phone business. Slim is the biggest investor in the Dutch firm.
The new terms in light of the commitment provided, resulted in the increase of the transaction value to EUR8.55 billion or USD11.4 billion from its original value of EUR8.1 billion.
Slim owns 30% of KPN and the commitment would increase the probability of the deal being completed. In giving the commitment, Slim said that the sale of the stake to Telefonica would avoid conflicts for a separate EUR7.2 billion bid for KPN from a takeover as it has the power to block any such actions to be taken against the firm.
According to ING Groep NV analyst Emmanuer Carlier, "The foundation has said they want America Movil to be clearer on their intentions on E-Plus and now they've done so. It no longer makes sense for the foundation to act."