Juan Fernandez Gonzalez | 30-11--0001
América Movil's offer to buy KPN for €7,200 million has stirred up the European market, which has been pretty stagnant of late.
The move hasn't yet affected the possible sale of E-Plus – the German subsidiary of the Dutch company – to Telefónica, which was made public on 23 July, but KPN is still to decide on the matter and will do so within the coming weeks in a shareholders' meeting.
The question now is whether KPN's decision will come before or after América Móvil buys the Netherland-based company. Carlos Slim's group has not revealed its intentions towards Telefónica's bid, but everything points to the Mexican group wanting to stop it.
Telefónica is América Móvil's main competitor in Latin America, although the latter has a larger slice of the market. However, the situation in Europe is different. América Móvil is a new player in this market, whereas Telefónica has an established position.
Immediately after KPN's agreement with Telefónica, América Móvil broke its former deal with KPN in order to enable it to buy over 30% of shares. The only condition to close the sale published so far by América Móvil was to get over 50% of the voting power in KPN's board decisions. If KPN sells E-Plus, the company's area of operation will be reduced to Belgium and the Netherlands, whereas América Móvil would be also interested in operating in Germany.
So far, everything is uncertain, and Telefónica hasn't made any official statement as it is waiting for KPN's final decision. However, América Móvil intends to close the deal in September, so things should become clearer in the next few weeks.