Betaville on KPN...
The KPN foundation is rumoured to have been approached about a formal takeover offer for KPN, the listed Dutch telecoms group, and may willing to accept an offer.
People following the situation have heard talk the foundation has been presented with formal bid for KPN and is willing to accept the deal if other stakeholders approve the transaction.
The KPN foundation was set up to protect key national infrastructure when the former state-owned monopoly was being privatized. It was instrumental in blocking America Movil's EURO 7.2 billion takeover offer in 2013 by exercising an option to buy certain shares that will gave it almost 50 percent of KPN’s voting stock.
However, people following the situation said the timing of the announcement of the deal is still unclear. Some people had heard the transaction could be announced "imminently" while other people had heard the acquirer and KPN were looking to wait until after the outcome of the Dutch general election on March 17.
People following the situation have heard the offer presented to the KPN foundation may be higher than than between the EURO 335 and EURO 344 a share that was previously rumoured as the take out price, with one person following the situation a new offer has been pitched at EURO 380 incuding a dividend.
One person following the situation said the offer is being structured so that the Dutch government becomes a major shareholder in the new vehicle. EQT is said to be providing debt and equity financing.
Talk of a higher price has has triggered speculation a rival offeror may have trumped EQT's proposal, said people following the situation.
It's not clear, though, which company is the rival bidder, said these people following the situation.
Deutsche Telekom, the German telecoms giant, was previously rumoured the circling KPN and late last month its chief executive, Tim Hoettges, said Europe’s telecoms industry needs to consolidate.
Hoettges told Reuters that “the industry is in a dilemma that it can only escape through cost synergies I believe deeply that European consolidation is necessary.”
However, he also told Reuters Deutsche Telekom is not in "active merger" talks.
People following the situation had also heard talk BT Group, the London-listed telecoms company, had been looking at KPN. However, people close to the situation poured cold water on the speculation.
The talk came about prior to the news about the chairman of BT Group, Jan Du Plessis, falling out with the chief executive, Philip Jansen, over the pace of strategic change at the FTSE 100-listed company.
Other people following the siutation speculated Orange, the France-listed telecoms group, might be mystery rival suitor for KPN.