Copying and distributing are prohibited without permission of the publisher
Shareholder wants KPN to sell E-Plus
15 May 2012
KPN’s largest shareholder Capital Group wants company to sell German mobile unit, E-Plus
Read more:
KPN
E-Plus
Germany
Capital Group
América Móvil
Carlos Slim
Capital Group, the largest shareholder in Netherlands incumbent KPN, wants the company to sell its German unit, E-Plus, according to local reports.
Dutch newspaper Het Financieele Dagblad reports that Capital Group is worried about the firm’s performance and considers sale of the German unit a solution. The move comes as Mexican operator América Móvil, which already owns 4.8% of KPN, wants to buy up to 28% of KPN in order to expand in Europe and enter the German market.
Other sources have also told Reuters that KPN was contemplating selling E-Plus. German newspaper Der Spiegel has reported that E-Plus was in talks to raise funds for network expansion by selling thousands of its phone towers. In November 2011, KPN chief executive told Reuters that an agreement between E-Plus and Telefónica's O2 in Germany could be appealing as they both trail behind Vodafone and T-Mobile.
It is believed that if Carlos Slim, the Mexican businessman who controls América Móvil, becomes a majority shareholder in KPN, chances of merger of E-Plus and O2 will come to an end as Telefónica is a major competitor of América Móvil in Latin America. GTB
More from GTB
KPN sells Getronics unit in Latin America 03 May 2012
KPN says América Móvil's 23% offer too low 09 May 2012
KPN may sell Belgian mobile unit Base 17 Apr 2012
KPN open to 'serious' bids, says CFO 25 Jan 2012