Slim oversees €2 billion loss in KPN and Telekom Austria
Carlos Slim has overseen a €2 billion loss on his European investments this year after both KPN and Telekom Austria dropped in value.
Through América Móvil, Slim made his first forays into the European market this summer with an acquisition of a quarter of Dutch operator KPN and Telekom Austria for a combined fee of €4 billion.
Slim is thought to have made the investments in the European operators as part of a strategy to secure stakes in the market at depressed prices, considering the continent’s economic situation.
In just months, however, the value of a 23% stake in Telekom Austria has fallen significantly, according to estimates reported by the Financial Times.
The initial investment of approximately €4 billion has fallen by 46-47%, accounting for approximately €1.8 billion in total.
Shares in KPN dropped by 15% on Friday after it paid approximately €1.4 billion in the government’s 4G spectrum auction.
Slim has recently been criticised for making opportunistic acquisitions outside of his domestic market, which includes investments in Global Crossing and CompUSA.