This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

The Deal: KPN Confirms Talks With America Movil

Stock quotes in this article: AMX

NEW YORK ( The Deal) -- Dutch telecom Royal KPN on Thursday, Sept. 12, said it was in talks with América Móvil (AMX) about its Mexican suitor's unsolicited 7.2 billion-euro ($9.6 billion) offer for the outstanding shares.

In its first confirmation of discussions, KPN, of Amsterdam, said the talks were part of its board's fiduciary responsibility to investors. But it warned the negotiations may prove fruitless.

"In this process we are carefully considering and weighing the interests of our shareholders, employees, customers and other stakeholders on financial and non-financial matters including safeguarding the vital role of KPN in Dutch society," KPN CEO Eelco Blok and supervisory board chairman Jos Streppel said in a statement.

The talks come after a KPN foundation that functions as a poison pill said it would veto the deal, in part because it claimed América Móvil had not sought out talks. The Mexican phone company said Thursday that it "continues to be committed to its previously announced plans" for the 2.40 euro-per-share offer and described its talks with KPN as constructive.

But it reiterated that it may walk away because of the foundation's intervention.

The foundation is formally known as Stichting Preferente Aandelen B KPN, or Foundation Preference Shares B KPN. It has already forced KPN to issue it new shares equivalent to KPN's share capital minus one share.

It said it was safeguarding not only the company and its employees, but also "Dutch society more generally."

KPN shares by early afternoon in Amsterdam were up 0.04 euros at just under 22.28 euros.

América Móvil is controlled by billionaire Carlos Slim and this summer launched an unsolicited offer for KPN after last year buying a 29.8% stake as part of a European push. The bid came just days after KPN agreed to sell its German E-Plus unit to América Móvil nemesis Telefónica SA, of Spain, for 8.1 billion euros.

América Móvil was reportedly disappointed with the planned E-Plus sale but eventually agreed to vote its KPN shares in favor of the sale after Telefónica increased its offer to 8.55 billion euros.

KPN has yet to deliver its verdict on the offer.

-- Written by Andrew Bulkeley in New York

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,723.50 -81.21 -0.48%
S&P 500 1,932.82 -13.34 -0.69%
NASDAQ 4,386.9370 -35.1480 -0.79%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs