Telefonica is sticking to its guns over its offer for KPN’s German unit, following America Movil’s bid for the 70 per cent of the Dutch operator it does not already own.
The Spanish operator is holding its position over the E-Plus offer, although the context has changed with its global rival’s bid for the remaining shares in KPN.
“Telefonica confirms that it maintains its offer to buy E-Plus under the terms already announced and considers it definitive,” a company spokeswoman told Reuters.
Under the current deal, KPN would receive €5 billion and 18 per cent in the enlarged entity formed by E-Plus and Telefonica’s mobile unit in Germany.
However the move by America Movil has been interpreted by some analysts as Carlos Slim (pictured) attempting to force Telefonica to improve its offer for KPN’s E-Plus.
America Movil has noticeably held back from approving the Telefonica-E-Plus deal. It says it is still deciding its view on the proposal.
Approval for the E-Plus deal will occur through a shareholders’ EGM, which will likely take place in October.
Telekom Austria, another America Movil investment, is also attracting some attention, following America Movil’s move. The Mexican group owns 23.7 percent of the Austrian incumbent, making it the second-biggest shareholder after the Austrian government. It bought into Telekom Austria as part of the same spree last year that saw it net its KPN stake. In addition, the Slim family controls a separate 3.1 percent stake in Telekom Austria.
Analysts expressed doubts whether America Movil’s KPN bid is a sign of things to come for Telekom Austria, not least because of the practical aspects of launching two such bids simultaneously. Also, the bid for KPN was motivated by the specific circumstance of the Telefoncia-E-Plus deal, they said.
This did not stop the head of Telekom Austria’s workers council pressing the country’s government to make its intention for its own stake in the telecoms operator.