KPN posts quarterly loss, points to E-Plus sale costs

22nd October 2013, Comments 0 comments

Dutch telecoms operator KPN which last week saw off a hostile takeover bid by Mexico's America Movil, on Tuesday published a net loss of 243 million euros for the third quarter.

The dip in profit is mainly related to costs involving the ongoing sale of its German subsidiary E-Plus to Spain's Telefonica, with KPN having to "adjust the outlook to reflect its new group profile excluding E-Plus," it said in a statement.

"We are continuing operations towards our outlook and KPN will have a strong financial profile after the sale of E-Plus," KPN chief executive Eelco Blok said in the statement.

Shareholders on October 2 approved the E-Plus deal valued at five billion euros and a 20.5 percent stake in Telefonica Deutschland.

Meanwhile, America Movil owned by one of the world's richest men, Carlos Slim, last week dropped its multi-billion euro hostile bid to take over KPN.

America Movil's announcement came after two months of intensive wrangling to acquire a majority stake in KPN, which Slim's group valued at 10.2 billion euros ($13.6 billion) when it announced the bid in early August.

The bid came to a shuddering halt however after an independent foundation linked to KPN -- one of the largest fixed and mobile operators in The Netherlands and the third-largest in Germany and Belgium -- exercised a call option to acquire preferred shares.

The move by Foundation Preference Shares B then gave it just under 50 percent of voting rights and issued shares enabling it to block the deal.

Last week KPN said America Movil was offering too little, while Slim's company said the Hague-based KPN refused further talks on America Movil's plans unless it increased its offer price.

"We have had numerous discussions (with America Movil) on all aspects of their intended unsolicited offer," Blok said.

"This thorough process has not led to an agreement which could be recommended to our shareholders," he said.


© 2013 AFP

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