The companies have been in talks for several weeks on the offer and recent reports suggested they were nearing an agreement. However, KPN was unwilling to continue the talks without an increase in the bid price. The takeover was further complicated by the foundation set up to protect KPN's interests. In late August it exercised an option to acquire 50 percent minus one of KPN's shares, in order to protect the company from AMX's "hostile" bid.
America Movil said KPN also did not respond to its proposals on issues such as strategic direction, employment, national security, social policies and minority shareholder protection. Despite an initial positive response from KPN's supervisory board, America Movil said the Dutch company refused any further negotiations without an increase in the price. While the Mexican company had received approval from the securities regulator to launch a public bid, the blocking stake and the disagreement over price would have made it impossible to complete the takeover.
KPN confirmed it was not happy with the price offered and could not obtain an acceptable proposal on the "content, firmness, duration and enforceability" of America Movil's commitments on other stakeholder interests. The proposed price did not reflect "sufficient value", and America Movil showed no commitment to shareholders, employees, customers, trade unions and Dutch society more generally, KPN said. The KPN boards held "numerous discussions" with America Movil, the Dutch company said, but it did not provide further details on the talks.
The company said it will continue with its standalone strategy, supported by the proceeds of the sale of E-Plus in Germany.
