KPN Mulls America Movil Offer, Says Move Undervalues Company
America Movil SAB de CV's (NYSE:AMX) move to raise its stake in Royal KPM NV on Tuesday was met with a skepticism, as KPM said the 8-euros-per-share cash offer "substantially" undervalues the company, Dow Jones Newswires reports.
Despite the initial reaction, KPN says its management and supervisory boards will still put the deal under a microscope to examine the benefits of the offer, and to get a clearer sense of America Movil's intentions, the company said. While it debates the decisions, the company says it plans to explore all available options.
America Movil stated it hopes to increase its stake in KPN to 28 percent, up from its current 4.8 percent holding. The deal would be worth up to 64 billion euros.
According to International Business Times, Carlos Slim Helu, owner of the mobile telecom company, says he has been working to expand America Movil beyond North and Central America, where it currently operates in 18 countries and provides cell service to more than 240 million customers.
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