America Movil shares decline while discussing KPN buyout

By Marc Castro

Sep 12, 2013 04:07 PM EDT

KPN, the Dutch telecommunications company, is in discussion with America Movil of Mexico as to Movil's EUR7.2 billion or USD9.6 billion take over bid.  Last Thursday, the two companies confirmed the discussions and said the outcome of the talks remain unclear.

The deal would test billionaire Carlos Slim's efforts to grow beyond Latin America. This is because growth opportunities in the region are limited. This limitation got smaller as two weeks ago, KPN Foundation sought to block the offer Slim made for the firm.

Despite the apparent positive effect on the share values for KPN, America Movil's shares fell by one percent last Thursday. This stems from concerns about the deal's size may affect the company's finances as there are existing investments as well as fraught with risk as Movil has little or no experience of doing business in Europe with its competition and regulation.

Share values for America Movil fell by 1.4% to MXP13.10 per share at late morning trading while KPN shares jumped 2.3% to EUR2.29 per share.

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics