KPN is still considering spinning off its German mobile business E-Plus in an attempt to fend off an unwanted bid from America Movil. An announcement on a move is likely within two weeks, people familiar with the situation told the Financial Times. A spin-off could open the way for E-Plus to ultimately link with O2, the German mobile subsidiary of Telefonica, which the Spanish operator announced it was seeking to list. The possible spin-off is KPN's latest strategy to convince its shareholders not to sell to America Movil, which is offering to buy up to 28 percent of KPN's shares. KPN has treated the bid as an hostile offer, saying it undervalues the company and would give the Mexican group significant influence over decision-making. Meanwhile, KPN and Telefónica are continuing discussions over a possible link-up between E-Plus and O2, and there is "enough movement between parties" to keep the exploration promising, a person familiar with the situation told the paper. A spin-off of E-Plus at a higher price would siphon off shareholder interest and make KPN's shares less attractive to the Mexican group.
