KPN Holds Talks With America Movil on Possible Synergies
Royal KPN NV (KPN) is in talks with investor America Movil SAB (AMXL) to shape cooperation efforts after Carlos Slim’s wireless carrier obtained more than a quarter of the Dutch telecom operator’s shares in an unsolicited bid.
“Our relationship is fine,” Chief Executive Officer Eelco Blok of the Hague-based KPN, said on a conference call today. “We are in talks to explore synergies. Initially this is just between us and America Movil, but it is obvious Telekom Austria could be involved in the talks in a later stage.”
Carlos Slim, the world’s richest man, has expanded America Movil into Europe to take advantage of phone company valuations that have fallen during the euro-region crisis. The Mexican company said it bought 28 percent of KPN in June, the same month it purchased a stake in Telekom Austria (TKA) AG.
KPN’s description of the talks as “constructive” contrasts with its original position on America Movil’s 2.6 billion-euro ($3.4 billion) bid for a stake. The Dutch operator asked shareholders to ignore the offer and unsuccessfully held talks on a potential merger involving its E-Plus wireless unit in Germany.
KPN shares fell 1 percent to 5.74 euros as of 10:35 a.m. in Amsterdam after the company said third-quarter profit fell 32 percent amid increasing price competition in Germany and a decline in mobile subscription revenue.
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