KPN is advising shareholders not to tender their shares to America Movil, because the Mexican company is offering no premium on the operator’s shares. KPN also said it was exploring all strategic options to unlock “superior value” for shareholders.
Since 2003, around 44 percent of shareholders have been represented at shareholder meetings, where decisions are most often taken by a simple majority. This system could give AMX quite some influence, as a stake of 30 percent could form the majority of shareholders present. It is not clear though what other institutional shareholders will do. The Mexican company has reportedly rejected a proposal by KPN to hold a shareholders meeting.
By targeting a 27.7 percent stake, America Movil is deliberately staying just below the 30 percent mandatory public offer threshold, avoiding the requirement to make an offer for all outstanding KPN shares but potentially deterring other third parties from making an offer for the whole of KPN in the future, KPN said. The operator said earlier that the EUR 8 per share offer undervalues the company.
KPN also announced a review of strategic options for E-Plus to unlock value embedded in the German business. KPN earlier launched a comprehensive review of strategic options for its mobile operations in Belgium.
The operator reconfirmed its guidance for full-year 2012.
