Latin America’s largest operator group America Movil announced plans to buy up to 28 percent of Dutch operator KPN. America Movil said it already holds a 4.8 percent stake.  In what would be America Movil’s first major foray into Europe, the company has offered EUR8 per share – a 23 percent premium on the closing price – meaning the deal could cost it more than US$3 billion, according to Reuters.

Although no reason was given for increasing the stake to 28 percent, Dutch financial regulations require companies offering to acquire 30 percent or more of voting rights must make a formal takeover bid for the remaining shares.

America Movil – controlled by Mexican business tycoon Carlos Slim – has informed Dutch financial regulators about its intentions and is working “constructively” with KPN’s management on the bid, with the aim of completing the transaction by the beginning of June.

Operating in 18 countries in the Americas, America Movil has more than 246 million mobile customers through its Claro and Telcel brands. Brokerage Monex said in a client note that the move is potentially positive for America Movil as it will allow the company to gain indirect experience of the European market.

KPN has recently suffered from a decline in profits and has said it intends to speed up its cost-cutting efforts, including shedding between 4,000 and 5,000 jobs. The company has struggled as it was slow to adapt its SMS pricing to compete with cheaper instant messaging services. In April, KPN said it was reviewing its strategic options for its BASE mobile operations in Belgium.

Bloomberg reported that KPN’s share price jumped by as much as 22 percent following the news of America Movil’s offer.