América Móvil acquires additional KPN shares ahead of tender offer

América Móvil acquires additional KPN shares ahead of tender offer

Carlos Slim, the billionaire owner of América Móvil, has increased pressure on KPN by purchasing additional shares in the company during his outstanding tender offer for a stake of up to 27.7%.

Through four separate transactions, América Móvil purchased six million shares in KPN at a price of €7.80 per share, increasing its stake to 7.30%.

The purchase is the second in less than two weeks with América Móvil having previously increased its stake to 5.01%.

KPN is opposed to Slim’s bid to increase his stake in the company to 27.7%, stating that his €8 per share purchase offer substantially undervalues the company. The Dutch carrier faces the challenge of convincing shareholders to reject Slim’s offer for the purchase period, which has a deadline of June 27.

Among the options being considered to make KPN less attractive to América Móvil are the spin-off of KPN’s German business E-Plus which could add enough value to KPN’s share price to deter the bid.

Coordination and synergies with Telefónica’s German operator O2 are considered a possibility by analysts after Telefónica announced it was seeking a sale of the unit at the end of last month.

Under Dutch law a bidder is required to buy all shares in a company once it goes over the 30% ownership threshold. Slim’s bid, if successful, would place him just under that threshold but still allow significant influence over decision making, according to KPN.


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