Dutch phone company Royal KPN NV had been awaiting a bid from America Movil SA with a planned sale of its German wireless business in order to avoid paying taxes on its future earnings. The Dutch government had allowed KPN to record a tax-book loss amounting to EUR3.7 billion for the sale, according to a statement issued by the company.
The smaller tax paid would make KPN be more valuable for America Movil. The company is controlled by Carlos Slim and is based out of Mexico. The Mexican firm is planning to forward a bid worth EUR7.2 billion for shares in KPN it does not already own. This week, America Movil is expected to file its bid as well as obtain regulatory approval according to an investor who was updated as to the current situation.
KPN share values increased by 0.9% to EUR2.34 per share at midday trading in Amsterdam. The planned offer from America Movil was worth EUR2.40 per share.
Last July, KPN had agreed to sell its German wireless business to Telefonica SA. The Spanish telecoms firm still is in the running, increasing its offer to EUR8.55 billion from its original offer of EUR8.1 billion.
The shareholders of KPN is set to vote on the sale of its German unit on October 2 in The Hague.
Join the Conversation