Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



America Movil Moves to Take Over Royal KPN NV Outright

America Movil (NYSE: AMX  ) , 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 (NASDAQOTH: KKPNY  ) .

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.


Read/Post Comments (0) | Recommend This Article (1)

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2588654, ~/Articles/ArticleHandler.aspx, 9/30/2016 9:37:39 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 21 minutes ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 4:00 PM
AMX $11.44 Down -0.05 -0.44%
America Movil CAPS Rating: ***
KKPNY $3.37 Down +0.00 +0.00%
ROYAL KPN N.V. CAPS Rating: No stars
TEF $10.08 Down -0.18 -1.75%
Telefonica CAPS Rating: ****