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America Movil agrees support for KPN sale of E-Plus
2013-08-26 08:43:00| Telecompaper Headlines
(Telecompaper) Telefonica has agreed to give KPN a bigger stake in their combined German mobile operators in order to gain approval for the deal from KPN's largest shareholder, America Movil. KPN will still receive EUR 5 billion cash for merging E-Plus with Telefonica Deutschland. In addition, the Dutch operator will receive a stake of 20.5 percent in the new company, up from 17.6 percent as agreed in July. Telefonica will hold 62.1 percent in the German company, instead of the 65 percent originally agreed, and the remainder will be free float. Telefonica will still have an option to increase its stake to 65 percent, a year after completing the initial deal at a price of EUR 510 million. KPN shareholders are scheduled to vote on the proposed sale of E-Plus on 02 October. America Movil said in a statement that it will vote for the transaction at the EGM; its board members at KPN also approved the new deal. In addition, the Mexican company reiterated its intention to launch a takeover bid for control of KPN, saying it recently presented the bid to KPN management and plans to start talks with local authorities on the offer.
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Category:Telecommunications