KPN urges shareholders not to accept America Movil’s $3.5 bn offer

Dutch telecoms company KPN NV, today advised its shareholders not to accept Mexican telecom group America Movil's offer to buy a stake in the company saying that the €8 per share was too low.

The Hague, Netherlands-based company also said that it would review "strategic options" for its German operations in order to create "superior value" for its shareholders.

Meixico City-based America Movil, controlled by Mexican tycoon Carlos Slim, which already holds 4.5 per cent in KPN, had last month offered to buy an additional 23.2 per cent stake for $3.5 billion. 

"The KPN Boards conclude that the price America Movil is offering is too low for gaining significant influence over KPN and substantially undervalues KPN on a standalone basis," KPN said in a statement.

KPN believes that by focusing its interest on only 27.7 per cent and deliberately below 30 per cent, which avoids the obligation to make a bid for all outstanding shares, America Movil is discouraging other parties in a future to bid for KPN as a whole.

KPN also said it was reviewing strategic options for its German mobile telephony unit E-Plus, and has already reviewed options for operations in Belgium.