America Movil has announced it will not proceed with its 7.2-billion-euro ($9.8 billion) bid to acquire the 70.23 percent stake it does not already own in Dutch telephone company KPN.
The company controlled by Mexican multi-billionaire Carlos Slim said Wednesday in a regulatory filing that it would not continue to pursue the offer after a foundation that safeguards the interests of KPN's shareholders exercised a call option in August to obtain nearly 50 percent of the Dutch telecom's issued and voting stock.
America Movil, which currently owns a 29.77 percent stake in the Dutch phone company, said in a statement that it considered the foundation's actions to be to the detriment of all of KPN's shareholders.
The planned takeover was announced on Aug. 9 after talks with KPN's executives and directors, with America Movil offering 2.4 euros ($3.28) per share.
"The foundation, having exercised the option granted to it by KPN to purchase class B preference shares in the capital of KPN, obstructs the fulfillment of (the takeover bid), to the detriment of KPN shareholders who would have intended to participate in the intended offer," the Mexico City-based company said in the filing.
It added that the foundation's action made the planned bid "not viable."
America Movil, Latin America's leading telecommunications provider, had 262 million wireless subscribers and 67 million revenue generating units in the Americas as of June 30. EFE