America Movil drops multi-billion-euro offer for Dutch KPN
America Movil of Mexico, controlled by one of the world's richest men Carlos Slim, said Wednesday it was dropping a multi-billion-euro bid for Netherlands operator KPN after a Dutch foundation blocked the takeover.
"America Movil will not launch the intended offer," the company said in a statement.
The bombshell announcement came after an independent foundation linked to KPN moved to block the deal in late August by exercising a call option to acquire preferred shares.
The move by Foundation Preference Shares B KPN gave it just under 50 percent of voting rights and issued shares in the lumbering Dutch operator, enabling it to then block the deal.
America Movil has been planning to offer 2.40 euros ($3.20) in a hostile bid to take control of KPN, one of the largest fixed and mobile operators in the Netherlands and the third-largest in Germany and Belgium.
When it announced the bid in August, it valued the Dutch company at 10.2 billion euros ($13.6 billion).
America Movil "has carefully reviewed the options available to it in relation to the exercise of the call option by the Foundation," the Mexican company said.
It "now concludes, in view of the Foundation's position and the discussions with KPN, that (the) aim to acquire more than 50 per cent of the voting rights in KPN... will not be met by making the intended offer," the company said.
© 2013 AFP