KPN: Discounted Rights Issue; World’s Richest Man; Telefonica (O2D); Possible Take Over? World’s Leading Special Situations Advisor, TDR Business Wire LONDON & NEW YORK -- July 23, 2013 With the market rallying and peaking all-time highs, Special Situations are back. Today’s confirmed unit sale by KPN (O2D) is one such situation. The Distressed Report (TDR), the world’s number one advisor to professional money managers on equity event driven stocks globally discovered KPN in a European deep discount research note earlier this year. Announcing a near-term +50% target price, TDR researched three scenarios for KPN’s value to spike from its lows with their key belief being that Telefonica (O2D) would make an offer for KPN’s German mobile business, E-Plus. The world’s richest man, Carlos Slim, is also involved, and there’s more to the deal than meets the eye. All is not revealed in today’s bid confirmation according the analysis by The Distressed Report. They predict another deal. “We advised clients ahead of Telefonica bidding. The confirmed bid for E-Plus is excellent value for a unit that’s worth 28% of KPN’s EBIT. There’s more; if approved, we believe there is another takeover deal in the short-term pipeline. A key sign for us on KPN was researching filings that Carlos Slim was buying into KPN and further entered the deeply discounted KPN rights issue, owning shy of 30% of the company”, commented, Ryan Mendy, COO of TDR. For more, you can click here for the Full Analysis or request a sample of upcoming Special Situations. “Different to any other research advisor, four times a month, TDR produces global Special Situations research whereby the catalysts reveal investment plays on notable Insiders (management), Activism, Deep Value liquid stocks ($1bn+) with a Catalyst; as well as, Post-Bankruptcy & Re-Organizations, Turnarounds and Rights Offerings”, continued Mendy. The Takeover KPN was up over +10% yesterday is up another +5% this morning. In accordance with the takeover scenario projected in TDR’s research report, KPN has today finalized an agreement with Telefonica Deutschland for the sale of its German unit E-plus. The transaction is subject to shareholders’ approval as well as regulatory approval. The deal values E-Plus at valuation of EUR 8.1bn implying a multiple of 9x FY13E consensus EV/EBITDA, which we believe is a good deal for KPN. KPN would be getting EUR5bn in cash proceeds and 17.6% stake in the combined entity (E-Plus and Telefónica Deutschland) Contact: The Distressed Report™ Ryan Mendy +1-(212)-714-7046
KPN: Discounted Rights Issue; World’s Richest Man; Telefonica (O2D); Possible Take Over? World’s Leading Special Situations
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