DUTCH telecoms group KPN set out plans for a €4bn rights issue yesterday, one of many debt-laden European firms expected to capitalise on surging equity markets in an attempt to avoid credit rating downgrades.
KPN, in which Mexican billionaire Carlos Slim’s America Movil took a near 28 per cent stake in 2012, has along with other big telecoms groups seen earnings dwindle in competitive markets and had to pay more than expected for a 4G mobile licence.
KPN will hold an extraordinary general meeting (EGM) on 19 March. However, analysts said the company’s opaque outlook was unlikely to entice shareholders.
City A.M. Reporter