The council representing employees of Dutch telecommunications firm Royal KPN NV on Thursday urged authorities in the Netherlands to halt America Movil's planned bid for the 70 percent of KPN it does not already own.
"We call upon the Cabinet and parliament to help prevent this takeover by using your influence and drafting protective legislation," KPN's Central Enterprise Council, known by the Dutch initials COR, said in an open letter to lawmakers and government ministers.
The COR said it was particularly concerned about continuity of services and employment security at KPN if America Movil takes the reins of the telecom.
KPN's board is gauging the Mexico City-based company's plans for the operator in ongoing talks, after which it will decide whether or not to recommend that shareholders accept the takeover bid.
The COR said Dutch law was not stringent enough to prevent the company executing the takeover from naming new board members or ignoring previous agreements once it had secured a majority stake.
The council cites a poll showing that most Dutch citizens oppose America Movil's takeover bid.
America Movil, controlled by Mexican multibillionaire Carlos Slim, announced on Aug. 9 its plans to acquire the stake it does not already own in KPN for 2.40 euros per share (or roughly $7.2 billion).
It said Monday that the Dutch telecom's employees were critical to its future success and that it planned to maintain the KPN brand and keep the company's headquarters at The Hague.
Dutch Economy Minister Henk Kamp, meanwhile, met Thursday with America Movil CEO Daniel Hajj Aboumrad to discuss the company's plans for KPN.
On Monday, Spanish telecommunications giant Telefonica, America Movil's biggest rival in the Americas, said the Mexican company had agreed to back Telefonica's agreed bid for KPN's German mobile unit.
America Movil initially opposed the transaction but endorsed it after Telefonica increased its bid, which is now valued at 8.55 billion euros ($11.4 billion).
The original proposal called for KPN to receive 5 billion euros ($6.7 billion) in cash for E-Plus and a 17.6 percent stake in Telefonica Deutschland, which already owns the O2 mobile brand in Germany.
The new offer, valued at 8.55 billion euros ($11.4 billion), would leave KPN with 20.5 percent of Telefonica Deutschland.
Though America Movil is onboard, the deal must still clear regulatory hurdles in Germany, where O2 is now the fourth-largest cellphone operator and E-Plus ranks third.
The companies have a combined subscriber base of 42.7 million, meaning that the proposed merger would create Germany's top cellphone operator in terms of customers. EFE