World’s richest man dabbles in the Dutch telecoms sector
THE WORLD’S richest man, Carlos Slim, has set his sights on Europe by offering to buy about a quarter of Dutch telecoms group KPN, sending its shares soaring.
America Movil, the Fortune 500 telecoms giant owned by Mexican tycoon Carlos Slim, yesterday announced its intention to increase its holding in KPN from 4.8 per cent to 28 per cent.
The Mexican group offered €3.2bn (£2.58bn) in cash for the Dutch stake, or €8 per share – a premium of 23.5 per cent over Monday’s closing price.
America Movil, which provides wireless services primarily in Latin America and the Caribbean, said it “has been evaluating expanding its operations to other regions outside the Americas” having exhausted growth opportunities in its current operating regions.
It added that KPN, “which has an attractive position in important European markets”, represents its first big investment in Europe.
But KPN hit back at the surprise approach, saying in a statement last night that the bid “substantially undervalues the company” and that it plans to “seek further clarification” about Movil’s intentions.
Carlos Slim, ranked by Forbes as the world’s wealthiest man, has made a habit of buying struggling companies and turning them around. Before the offer was announced, KPN’s shares had fallen 39 per cent in the last year.