KPN: Discounted Rights Issue; World’s Richest Man; Telefonica (O2D); Possible Take Over? World’s Leading Special Situations

  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)


The Distressed Report™
Ryan Mendy
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