Time to talk

30 August 2013 By Chris Hughes

A stakeholder foundation has blocked America Movil’s planned bid for the Dutch telco, before a hard offer has been made. That’s not the free market way. But the no could just possibly lead to an agreed deal – if Movil lifts its 7.2 bln euro proposal, and KPN responds sensibly.

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A stakeholder foundation charged with promoting the interests of KPN moved to thwart America Movil’s possible takeover of the Dutch telecoms group by using a poison pill on Aug. 29.
The foundation exercised a call option forcing KPN to issue it with preference shares giving it 50 percent of shareholder votes.
“The Foundation has intervened … to safeguard the interests of KPN and its stakeholders, including shareholders, employees, customers, trade unions and Dutch society more generally,” it said. “The interests of these stakeholders are at risk owing to the announcement on Aug. 9 by the Mexican company America Movil, without prior consultation with KPN, of its intention to make a public offer for the shares in KPN it does not already own.”
Shares in KPN were down 5.29 percent at 1100 GMT at 2.167 euros.
America Movil responded with a lengthy statement defending its conduct in relation to KPN and threatening to pull its offer.
“We believe we can help make it into a better company, one that grows, creates jobs, is more competitive and ultimately is strong enough to remain a major player at home and abroad,” it said. “In the event that the foundation maintains its current position and seeks to prevent the offer from proceeding to the detriment of KPN’s customers, employees and shareholders, and also to the detriment of telecommunication services in the Netherlands, all of whom America Movil firmly believes will benefit from the offer, America Movil is prepared to withdraw its offer.”

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