logo
Share SHARE
FONT-SIZE Plus   Neg

KPN Mulls Strategic Options For Mobile Unit In Belgium - Update

Confirming the reports, Dutch telecommunication firm Royal KPN NV (KKPNY.PK, KKPNF.PK) on Monday said it is exploring strategic options for its mobile activities in Belgium, known as BASE. The shares declined around 4% in the morning trade in Amsterdam.

In its statement, KPN said it has taken note of recent market rumors about a possible change in the composition of the divisions within the firm. The company said it is constantly viewing opportunities in the framework of the implementation of the strategy.

At this time the outcome of this study are still unclear and any further announcements will follow as appropriate, the company noted.

On Saturday, news agency Bloomberg reported, citing unnamed people familiar with the situation, that KPN was considering to sell its Belgian mobile-phone unit in a deal possibly worth 1.8 billion euros.

As per the report, private equity firms such as Apax Partners LLP APAX.UL are likely to be interested in BASE, Belgium's third-largest mobile operator.

KPN, which has been struggling with lower market shares in its fixed-line and mobile operations, had said in May last year that it identified several priorities to grow its businesses and that its objectives for the period from 2011 to 2015 included boosting investment in Belgium, among others.

In December last year, KPN agreed to sell its French mobile unit KPN France to Bouygues Telecom.

Hurt by macroeconomic headwinds and challenging industry trends, KPN in January had issued a profit warning for fiscal 2012, after reporting lower results in its fourth quarter.

In Amsterdam, KPN shares are currently trading at 7.33 euros, down 0.29 euros or 3.85 percent on a volume of 4.48 million shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Social media app Snapchat has introduced a new location service, Snap Map, that will allow users of the app to see the location of all their friends on a map. The new feature will essentially allow a user to see where his friends are hanging out and what they are up to and also share his own location with friends in real time. The U.S. has suspended all imports of fresh beef from Brazil due to recurring concerns about the safety of the products. The suspension of shipments from Brazil, the fifth largest exporter of beef to the U.S., will remain in place until the Brazilian Ministry of Agriculture takes corrective action, the U.S. Department of Agriculture or USDA said in a statement. The annual Federal stress test was cleared by 34 top banks. The result shows strong capital levels and the ability of large banks to remain capitalized even in stressed situations. The Federal Reserve noted that these banks will be able to lend to households and businesses even at severe recession and throughout the economic cycle.
comments powered by Disqus
Follow RTT