America Movil Moves to Take Over Royal KPN NV Outright

Before you go, we thought you'd like these...
Before you go close icon

America Movil , the giant Latin American mobile phone operator, today made a public offer to acquire the remainder of the shares it does not already own of Netherlands-based telecommunications company Royal KPN NV .

America Movil says its cash offer of $3.21 per share of KPN is a "35.4% premium over the average closing price of KPN's ordinary shares on Euronext Amsterdam for the last 30 days." America Movil already controls 29.77% of KPN's shares, and the cost for the rest of KPN would be $9.6 billion.

Conditions attached to America Movil's offer are that at settlement it will control at least 50% of KPN's voting rights, and that there are no competing transactions.


The takeover attempt is complicated by KPN's agreement of two weeks ago to sell 100% of its interest in German mobile operator E-Plus to Telefonica's German operations for $6.68 billion plus a 17.6% stake in Telefonica Deutschland.

Many analysts believe Mexican billionaire Carlos Slim, who owns America Movil, wants E-Plus for himself. E-Plus has a 15% stake in the German market that would be near-impossible to build from scratch.

KPN issued a short statement today saying it saw America Movil's press release announcing its KPN takeover plans and that it "will explore all strategic options open to KPN."

KPN also said it expects to convene an "Extraordinary General Meeting related to the sale of E-Plus to Telefonica Deutschland in the coming weeks."

America Movil said in its statement that it is "carefully evaluating the merits of the proposed [E-Plus] transaction and will make a final determination in relation to the exercise of its voting rights at the upcoming Extraordinary General meeting of KPN."

-- Material from The Associated Press was used in this report.

link

The article America Movil Moves to Take Over Royal KPN NV Outright originally appeared on Fool.com.

Fool contributor Dan Radovskyhas no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners

Don't Get Too Close To a Newborn Giraffe Unless You Want to Get Kicked in the Nuts Don't Get Too Close To a Newborn Giraffe Unless You Want to Get Kicked in the Nuts
Cops Catch Up To A Suspicious Speeding Vehicle - And Make An Appalling Discovery Inside Cops Catch Up To A Suspicious Speeding Vehicle - And Make An Appalling Discovery Inside
If You Find One Of These In Your Yard, Don't Touch It - And Try Not To Panic If You Find One Of These In Your Yard, Don't Touch It - And Try Not To Panic