By Archibald Preuschat
AMSTERDAM--Dutch telecom group Royal KPN NV (KPN.AE) Thursday
put its Belgium operations up for sale and reiterated its
recommendation to shareholders not to accept a partial takeover by
Mexican mobile giant America Movil SAB (AMX, AMX.MX).
The official announcement to divest its Base mobile phone
business in Belgium comes just a day after talks between KPN and
Telefonica SA (TEF) on a German market consolidation collapsed. KPN
intended to sell its German mobile provider E-Plus to Telefonica to
unlock shareholder value and to prevent shareholders from accepting
the offer from America Movil, which is controlled by billionaire
Carlos Slim.
"The KPN Boards maintain the view that the partial offer by
America Movil significantly undervalues the company and does not
offer an appropriate premium on all outstanding ordinary shares for
gaining significant influence," the telecom firm said.
Earlier this year KPN said was reviewing its options for Base In
Belgium, which has now been finalized, according to Thursday's
statement.
"The KPN Boards have decided to start the sale process for BASE
in July. The proceeds will be used to improve KPN's credit profile
and financial flexibility," KPN said.
America Movil wants to raise its stake in KPN to roughly 28%
from 8.7% at present, paying roughly EUR2.5 billion ($3.2
billion).
Write to Archibald Preuschat;
archibald.preuschat@dowjones.com