World's Richest Man Backs Up Dutch Telecom Firm

By Staff Reporter

Feb 21, 2013 03:34 PM EST

The world's richest man, multibillionaire Carlos Slim has increased his stake in KPN with a fresh Eur4 billion infusion into the Dutch telecommunications group. The new capital interest would also raise his participation to two seats on the company's board of directors.

The Mexican telecommunications magnate, with his America Movil already having a thirty percent interest on KPN, assured the company he would not take over the reins of the Dutch firm. KPN has been struggling in the market, sliding nine percent in market value to an eleven year low.

The capital infusion is not just out of Slim's pocket, as America Movil would also be required to shell out another Eur900 million to retain its current level of investment in the ailing Dutch telecom company. Overall, the Latin American telecommunications giant has already invested a total of Eur3 billion in KPN and is also knee deep in investment with another flailing European telecom firm, Telekom Austria.

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