Regions

Royal KPN foundation option for share buyback to block America Movil KPN Bid

August 30
6:14 AM 2013

The foundation of Royal KPN announced yesterday that it had exercised its option to buy preferred shares back in the company.The option allowed the foundation to get almost half of Royal KPN's issued and voting stock.The option was enough to block the EUR 7.2 billion or USD 9.5 billion bid by America Movil.America Movil currently holds 30% of KPN. Its EUR 2.40 per share offer would allow America Movil to gain majority control of the Dutch carrier.

America Movil said it would be willing to drop its offer. "In the event that the foundation maintains its current position and seeks to prevent the offer from proceeding to the detriment of KPN's customers, employees and shareholders, and also to the detriment of telecommunication services in the Netherlands, all of whom America Movil firmly believes will benefit from the offer, America Movil is prepared to withdraw its offer," the firm said in a statement.

Billionaire Carlos Slim controls America Movil.

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