Top Posters

KPN not trying to block America Movil

America Movil has confirmed a move to acquire 27.7% of Dutch operator KPN, but what's interesting is that the telco's management aren't trying to block the move.


That suggests there is a deal to be done, with price the only sticking point at present. KPN's management is sticking by its previous line - that the €8 per share offer is too low -, but hasn't voiced any objection to the take over in theory beyond that, noting only that it will review the bid in-line with its shareholder commitment.


Assuming the deal goes ahead - I'm guessing America Movil will come back with a higher price - it is a sign of reversal in telco power, in terms of a non-EU player eyeing a stake in the region rather than an acquisition the other way round. It could be a growing trend, given EU telcos are struggling against an economic crisis and predictions of dramatic drops in roaming revenues due to new EU regulations.


The question is, what's in it for America Movil, or any overseas player eying the EU market? I guess it must be a sign of confidence that the telecoms sector in the region isn't dead, just suffering at present.