Shows & Panels
- The 2014 Big Picture on Cyber Security
- AFCEA Answers
- Ask the CIO
- Building the Hybrid Cloud
- Connected Government: How to Build and Procure Network Services for the Future
- Continuing Diagnostics and Mitigation: Discussion of Progress and Next Steps
- Federal Executive Forum
- Federal Tech Talk
- The Future of Government Data Centers
- The Future of IT: How CIOs Can Enable the Service-Oriented Enterprise
- The Intersection: Where Technology Meets Transformation
- Maximizing ROI Through Data Center Consolidation
- Mitigating Insider Threats in Virtual & Cloud Environments
- Modern Mission Critical Series
- Moving to the Cloud. What's the best approach for me
- Navigating Tough Choices in Government Cloud Computing
- The New Generation of Database
- Satellite Communications: Acquiring SATCOM in Tight Times
- Targeting Advanced Threats: Proven Methods from Detection through Remediation
- Transformative Technology: Desktop Virtualization in Government
- The Truth About IT Opex and Software Defined Networking
- Value of Health IT
- Air Traffic Management Transformation Report
- Cloud First Report
- General Dynamics IT Enterprise Center
- Gov Cloud Minute
- Government in Technology Series
- Homeland Security Cybersecurity Market Report
- National Cybersecurity Awareness Month
- Technology Insights
- The Cyber Security Report
- The Next Generation Cyber Security Experts
Shows & Panels
KPN shares sell off after takeover falls apart
Friday - 10/18/2013, 12:40pm EDT
AP Business Writer
AMSTERDAM (AP) -- Shares in Dutch telecoms company Royal KPN NV are falling after Mexican billionaire Carlos Slim followed through on a threat to walk away from a takeover bid.
In early Amsterdam trading Thursday, KPN shares were down 8.8 percent to 2.22 euros ($3.01), well below the 2.40-euro per-share offer promised by Slim's America Movil. But the sell-off was not the bloodbath some investors had feared: shares were well below 2 euros when Slim began his approach in July.
The KPN Foundation, an independent body that oversees the company's interests, had branded Slim's offer -- of 7.2 billion euros ($9.8 billion) for the 70 percent stake he didn't already own -- as hostile. It blocked it by issuing new shares and told him to negotiate.
Movil said Wednesday KPN's management demanded a higher bid as a prerequisite to talks.
At a press conference Thursday, KPN CEO Eelco Blok confirmed that, saying Movil was trying to "buy a front-row seat for a dime."
KPN's shares have lost more than 70 percent of their value since Blok took the top job at the Netherland's largest telecommunications company in 2011. Customers with smartphones have been ditching KPN for cheaper Internet-based communications services such as WhatsApp and Skype.
KPN responded by hiking its prices for mobile Internet access, but was still forced to issue new shares this year to shore up its balance sheet. This month it also sold its German division, E-Plus, for around $11.4 billion, to Telefonica SA of Spain.
Blok had initially agreed to sell E-Plus for around $10.4 billion, but later negotiated a better deal under pressure from Movil.
"We have plenty of money because of the E-Plus sale, and for the moment we will continue independently," Blok said Thursday.
KPN is due to report third quarter earnings on Wednesday.
"KPN shareholders were better off with the Movil offer and they are now stuck with a company that's not worth more than around 2 euros per share," said Theodoor Gilissen analyst Jos Versteeg in a note.
He predicted Slim will eventually re-bid for KPN, possibly after buying additional shares below the 2.40 offer price.
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.