América Móvil makes offer for shares in KPN

30 May 2012 | Kavit Majithia


Latin American mobile operator América Móvil has made a play to acquire 27.7% of shares in KPN at €8 per share.

KPN has responded by stating the offer is too low, and it is already exploring other strategic options. Trading on the shares commenced today at €7.60 per share, and will close on June 27 2012.

América Móvil submitted a filing to Dutch regulators three weeks ago, making its intentions clear to make such a bid and tap in to the European market. Analysts and market watchers have claimed ageing European groups, subject to low valuations because of the present economic climate in the continent will be targeted by emerging cash-rich companies coming from Latin America in particular.

The Financial Times reports América Móvil’s offer stays under the 30% threshold at which Dutch Law rules a bidder would be obligated to buy all the shares. It has also been claimed the large minority share the Latin American provider has bid for could give it a controlling stake anyway, because of low shareholder attendance at KPN.

América Móvil has refuted claims it is looking to secure control of the Dutch company, and says the bid is tailored to partnering with the company, establishing itself as an investor and securing a foothold in Europe.