Mexican telecommunications company América Móvil, S.A.B. de C.V. (AMX, AMOV) said Wednesday it has increased its stake in Royal KPN N.V. (KKPNY.PK, KKPNF.PK) to 8.12 percent. This is the third time this week that America Móvil has boosted its stake in the Dutch telecommunications company.
América Móvil, controlled by Mexican billionaire Carlos Slim, said it purchased 3.70 million ordinary shares in KPN for 7.90 euros per share in cash. The company now holds 116.23 million ordinary shares in KPN.
In late May, America Móvil launched an offer to acquire shares of KPN for 8 euros per share and boost its stake in that company to 27.7 percent. The offer will expire on June 27, unless extended. América Móvil has noted that the investment in KPN represents its first significant investment in Europe.
However, KPN has urged its shareholders not to take any action on the unsolicited partial offer from América Móvil, terming its timing as "opportunistic".
KPN noted that by targeting only a 27.7 percent stake, América Móvil deliberately remains below the 30 percent mandatory public offer threshold. This will avoid the requirement to make an offer for all outstanding KPN shares, potentially deterring other third parties from making an offer for the whole company in future.
KPN has been going through hard times amid difficult market conditions in the Netherlands. In December 2011, the company agreed to sell its French mobile unit KPN France to Bouygues Telecom, and in April, it said it is exploring strategic options for its mobile activities in Belgium.
KPN is also exploring strategic options for its German business, E-Plus and has initiated a Dutch cost reduction program that is expected to be completed by next year-end.
AMX closed Wednesday's trading on the NYSE at $24.10, down $0.13 or 0.54 percent on a volume of 9.95 million shares.
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