--Mexican billionaire Carlos Slim gets foothold in European
market
--Shares tendered exceed maximum amount of offer
--America Movil seeks "constructive dialogue" with KPN
MEXICO CITY--Mexican telecommunications heavyweight America
Movil SAB (AMX, AMX.MX), seeking a foothold in the European market,
said Wednesday that its offer to raise its stake in Royal KPN NV
(KKPNY, KPN.AE) of the Netherlands to 27.7% ended with the number
of shares tendered exceeding the amount it plans to buy.
America Movil, controlled by billionaire Carlos Slim, said it
now has 24.9% of KPN and will buy an additional 2.8%. When the
offer expired Wednesday, shares tendered were enough to raise
America Movil's stake above the maximum 27.7%. The remaining shares
will be accepted based on a preset procedure, the company said.
America Movil, Latin America's largest wireless service
provider, is expanding into Europe with minority stakes in KPN and
Telekom Austria AG (TKA.VI), of which it plans to acquire up to
23%.
While KPN management opposed the EUR8-per-share offer as
undervaluing the company, Telekom Austria welcomed the new investor
aboard. America Movil estimated the cost of the two acquisitions at
$4.9 billion.
The stake in KPN makes America Movil the Dutch company's largest
shareholder.
"America Movil is pleased to have achieved its objective of
securing a meaningful minority stake in KPN. As a supportive,
long-term shareholder, we now look forward to an ongoing,
constructive dialogue with KPN and to leveraging America Movil's
significant scale and financial strength for the benefit of all KPN
stakeholders," America Movil said in an emailed statement.
America Movil Chief Financial Officer Carlos Garcia Moreno, in a
conference call last week with analysts, reiterated that the
company's intention is to be a "strategic long-term partner" of the
European concerns. He said America Movil isn't looking to take full
operational responsibilities, but is seeking an understanding of
the European telecommunications markets.
Mr. Garcia Moreno said Latin America will remain America Movil's
core market and main priority, but that merger-and-acquisition
opportunities in the region have been largely exhausted, in some
cases by regulatory restrictions.
America Movil had 246 million wireless subscribers in 18
countries in the Americas at the end of March, including 20 million
in the U.S., where it operates as a virtual mobile-network
operator. KPN is the largest phone operator in the Netherlands and
has significant operations in Germany. Last week, the company put
its Belgian operations up for sale.
America Movil shares traded on the Mexican stock market closed
up 0.1% Wednesday at 17.21 pesos ($1.27).
Write to Anthony Harrup at anthony.harrup@dowjones.com and
Archibald Preuschat at archibald.preuschat@dowjones.com