Brussels – Mexico-based telecommunications giant America Movil warned Friday that it would withdraw its takeover bid for Dutch telecoms group KPN if an independent foundation linked to that company persisted in blocking the deal.
"If the foundation maintains its current position and seeks to prevent the bid from prospering ... America Movil would be prepared to withdraw it," the company controlled by Mexican multi-billionaire Carlos Slim said in a statement.
America Movil said it had "taken note" of the foundation's use of an option to acquire nearly 50 percent of the Dutch telecom's issued and voting stock.
As a result of the move, the foundation can block America Movil's bid to acquire the 70.23 percent in KPN it does not already own for some 7.2 billion euros (roughly $9.6 billion).
The foundation said its decision was aimed at "safeguarding the interests of KPN and its stakeholders."
America Movil says its bid, "contrary to what the foundation has said, is the result of previous talks with KPN."
The Mexico City-based operator added that it has held "substantial" further talks with KPN this week with a view to wrapping up the deal.
The foundation's position is to the "detriment of KPN's customers, employees and shareholders, as well as telecommunications services in the Netherlands," America Movil said.
KPN's board is currently gauging America Movil's plans for the operator in the ongoing talks, after which it will issue a recommendation to shareholders regarding the takeover bid.