América Móvil Retracts KPN Bid

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América Móvil has, on Wednesday evening, withdrawn their bid on KPN. KPN now has to move on alone. This has been announced by the company of the richest man in the world, Carlos Slim.

In August the Mexican telephone company had offered 2.40 euro per share. The price of the shares has risen in the past days, since there was a rumor that there was an agreement between América Móvil and KPN.

The Mexicans now withdrew from the negotiation table since they say that KPN only wants to talk further if the bid is raised.

Carlos Slim, owner of América Móvil and richest man in the world - wikipedia

When the bid was done in August there was much commotion. The foundation KPN doubled their number of shares to make it impossible that KPN was taken over. Also in the House there has been discussion about the take over which some MP’s said was unfavorable to the Netherlands. One of the reasons they mentioned that most Dutch security and intelligence departments use the services of KPN and when the company would be in foreign hands they saw some threats to the Dutch security and intelligence. América Móvil was further blamed that they had no clear plans and didn’t communicate in an orderly way.

This move of that foundation now looks as a means of pressure from KPN to force América Móvil to pay more than 2.40 euro per share

Position KPN chairman Eelco Blok

The news of América Móvil withdrawing from the negotiations has caused turmoil among the share holders and the unions. They have question marks about the position of chairman Eelco Blok during the negotiations.

A stock exchange analyst, Jos Versteeg of the company Theodoor Gilissen, says that it is a very stupid move of KPN. “They should have taken the offer. Now the price of the shares will fall back to 2 euro each. Carlos Slim will then buy more shares. After two years the foundation KPN has to break down the protective wall they put up. For Slim KPN will then be a very good deal.”

According to the analyst, chairman Blok didn’t want to make a deal with América Móvil from the start. The problem is, according to him, that the previous chairman Ad Scheepbouwer only paid revenues to the share holders and didn’t invest at all. So, actually KPN needs a powerful owner.

The general feeling at the unions is that they are happy that KPN is not taken over. However, they also see the problems of the near future and are afraid that KPN can not play any role of importance in between a few European giant telephone companies. “It’s five minutes to twelve for chairman Eelco Blok,” a spokesman of Abvakabo says.