América Móvil makes €7.2 billion bid for KPN

América Móvil has made a €7.2 billion cash offer for the 70% of KPN it does not already own.

The Mexican firm, owned and chaired by billionaire Carlos Slim, has offered €2.40 per share for the Dutch company; 20% higher than KPN’s closing share price on Thursday.

KPN has said it will consider the offer and an América Móvil spokesperson told reporters that a full takeover would “facilitate greater operational cooperation and co-ordination between the two companies, to exploit all areas for potential partnerships and to intensify the realisation of synergy potential for both companies”.

The offer follows KPN’s attempt to sell its German operations, E-Plus, to Telefónica Deutschland for €8.1 billion earlier this year, which Carlos Slim later slammed for being too low a price.

América Móvil’s bid for KPN increases the potential for a counter offer from Telefónica in order to protect the German deal, Robin Bienenstock, analyst at Bernstein, told the Financial Times.

“It’s another sign that diversifying outside of Mexico is of paramount importance for Carlos Slim,” Bienenstock said.

KPN and América Móvil reportedly share a tumultuous relationship, and in July, the Mexican firm ended its shareholding limit with KPN which may have prompted the takeover bid.