Royal Kpn N.V.: Likely 9.5% ROI With Limited Downside
It's Official: KPN and Reggefiber Planning Joint VentureTim Poulus • Nov. 21, 2008
Royal KPN provides telephone, Internet and television services to personal customers through its fixed network in The Netherlands. For business customers, Co. provides a range of services, from voice, Internet and data services to fully-managed outsourced ICT solutions, in The Netherlands and... More
Tuesday, Oct 222013, 9:54 AM
Tuesday, Oct 222013, 9:54 AM| Comment!
- KPN (KKPNY) are up 1.5% in Amsterdam trading after the telco delivered slightly improving results (excl. its E-Plus unit, which was sold during the quarter)
- Revenue fell 7.6% Y/Y to to €2.08B, compared to a 9.4% drop YTD.
- EBITDA dropped 14% Y/Y to €743M as margin contracted to 35.7% from 38.5%.
- Net profit of €87M plunged 56% Y/Y.
- FCF declined 38% to €63M.
- CEO Eelco Blok: "As expected, market conditions remained challenging in the third quarter. Nevertheless, our businesses in The Netherlands and Belgium are showing positive operational momentum."
- PR, presentations
Thursday, Oct 172013, 4:55 AM
Thursday, Oct 172013, 4:55 AM| Comment!
- Although America Movil (AMOV, AMX) has withdrawn its €7.2B ($9.7B) bid for KPN (KKPNY.PK) because of a disagreement over price, the deal may not be dead, the CEO of the Dutch telecom group has indicated.
- "I'm not going to say which price we wanted because there is a possibility that we will be sitting around the table again," Eelco Blok said.
- Despite the prospect of renewed talks, KPN shares are -8.6% in Amsterdam.
Wednesday, Oct 162013, 12:33 PM
Wednesday, Oct 162013, 12:33 PM| Comment!
- Following weeks of tense negotiations, America Movil (AMX +5.9%) has decided to withdraw its bid for KPN (KKPNY.PK -7.5%). AMX shares have spiked higher on the news.
- Bloomberg reported earlier this month KPN wanted AMX, which already owns ~30% of the Dutch carrier, to raise its buyout offer above $10.7B to account for a tax ruling related to the pending sale of its German unit to Telefonica Deutschland.
- AMX was said to be balking at the demand, arguing its offer already accounted for the tax ruling, and that the Dutch mobile market was seeing intensifying competition.
Tuesday, Oct 12013, 4:10 PM
Tuesday, Oct 12013, 4:10 PM| Comment!
- Sources tell Bloomberg KPN (KKPNY.PK) wants America Movil (AMX +2.9%) to raise its buyout offer to €2.65/share (€7.9B/$10.7B) from a current €2.40/share (€7.2B/$9.7B), so as to take into account the favorable tax ruling it recently got on the pending sale of its German unit to Telefonica Deutschland.
- America Movil, however, is said to be holding firm, arguing its current offer already accounts for the tax ruling, and that cable provider Ziggo's recent entrance into the Dutch mobile market is a sign of deteriorating market conditions.
- The filing of America Movil's formal offer for KPN, originally expected in September, is now due this month.
- More on America Movil/KPN
Monday, Sep 162013, 4:15 AM
Monday, Sep 162013, 4:15 AM| Comment!
- KPN (KKPNY.PK) will be able to cut its taxable income in Holland by €3.7B ($4.9B) over the coming years, beginning in 2014, due to the losses it's suffering on the the €8.55B ($11.4B) sale of German unit E-Plus to Telefonica Deutschland.
- The Dutch telecom carrier, which is the subject of a €7.2B takeover bid from Mexico's America Movil (AMX, AMOV), bought E-Plus for almost €19B.
Thursday, Sep 122013, 2:27 AM
Thursday, Sep 122013, 2:27 AM| Comment!
- Has Carlos Slim's bluff been called? Slim's America Movil (AMX, AMOV), which owns 29.8% in KPN (KKPNY.PK), is in talks over a full takeover of the Dutch telecom carrier, the latter says.
- America Movil had offered €7.2B ($9.58B) to acquire the shares in KPN it doesn't own but threatened to drop the bid in response to the KPN foundation adopting a poison pill.
- KPN shares rose yesterday on speculation that Slim would increase his proposal even though America Movil has said there is "no way" it would do so. (PR)
Wednesday, Sep 112013, 2:58 PM
Wednesday, Sep 112013, 2:58 PM| Comment!
- Shares of KPN (KKPNY.PK +5.6%) trade up on speculation that Carlos Slim may up his €2.70/share offer for the Dutch telco.
- Slim threatened to drop America Movil's bid in response to the KPN foundation's poison pill adoption. However, broader strategic considerations such as the value of Movil's current KPN stake and the necessity of diversification due to regulatory pressures in Mexico may cause Slim to flip flop.
- Earlier, Moody's assigned an A2 rating to $750M in 2016 floating-rate America Movil notes intended to finance part of the KPN tender.
Monday, Sep 92013, 11:40 AM
Monday, Sep 92013, 11:40 AM| Comment!
- Royal KPN (KKPNY.PK) CFO Eric Hageman resigns. The company stated that Hageman stepped down due to personal circumstances unrelated to America Movil's contested takeover bid for the Dutch telco.
- Kempen analyst Sander van Oort: "The timing of the resignation isn't great ... He plays a crucial role in the [America Movil] negotiations and how to make this a successful transaction ... there might also be more internal focus now."
Friday, Aug 302013, 3:45 AM
Friday, Aug 302013, 3:45 AM| 1 Comment
- America Movil (AMX, AMOV) is prepared to withdraw its €7.2B takeover offer for KPN (KKPNF.PK) after an independent foundation created to protect the interests of shareholders and other stakeholders moved to block the deal.
- The foundation exercised an option to acquire almost 50% of KPN's voting stock, saying that those stakeholder interests were at risk because America Movil didn't consult with the Dutch telecom carrier before announcing its bid. However, the foundation is open to America Movil addressing its concerns.
- KPN shares are -5.2% in Amsterdam.
Monday, Aug 262013, 2:52 AM
Monday, Aug 262013, 2:52 AM| Comment!
- America Movil (AMX, AMOV), which owns almost 30% in KPN (KKPNF.PK) and is looking to acquire the rest, will support the latter's sale of its German mobile unit E-Plus to Telefonica Deutschland (TEF) after the Spanish-owned telecom operator improved the deal terms.
- KPN will now receive 20.5% in Telefonica Deutschland rather than 17.6%, as originally planned, raising the value of the transaction to €8.55B ($11.4B) from €8.1B.
- KPN shareholders are due to vote on the sale on October 2.
Friday, Aug 92013, 2:05 AM
Friday, Aug 92013, 2:05 AM| 2 Comments
- America Movil (AMX), which owns 29.8% of KPN (KKPNF.PK), is launching a bid to acquire the rest of the Dutch carrier for €2.40 a share, or a 20% premium to yesterday's closing price.
- The offer values the 70.2% stake that America Movil doesn't own at €7.2B.
- The proposal comes after America Movil last month terminated an agreement to keep its stake under 30% after KPN agreed to sell its German unit E-Plus to Telefonica (TEF) for €8.1B. The Mexican company has yet to decide whether to support the transaction.
- America Movil's proposal is conditional on obtaining a stake of over 50%.
Monday, Jul 292013, 3:21 AM
Monday, Jul 292013, 3:21 AM| 1 Comment
- America Movil (AMX) has terminated a "standstill" agreement to limit its holding in KPN (KKPNF.PK) to below 30%, signaling that Carlos Slim's company could bid for the whole of the Dutch telecom group.
- America Movil was entitled to end the deal following Telefonica's €8.1B bid for E-Plus, KPN's German mobile unit.
- America Movil hasn't said whether it plans to raise its stake in KPN to 30%, which would force the Mexican carrier to make an offer for the shares it doesn't own. (PR)
Tuesday, Jul 232013, 3:02 AMAfter months of speculation, Telefonica Deutschland (TEF) has agreed to acquire KPN's (KKPNF.PK) German E-Plus unit in a deal that values the subsidiary at €8.1B. KPN will receive €5B in cash and a 17.6% stake in Telefonica Deutschland. The transaction will create the biggest cellular operator in Germany with annual revenues of over €8B, and enable the combined entity to better compete with leading operators Deutsche Telekom (DTEGF.PK) and Vodafone (VOD). The merger is expected to create synergies of €5-5.5B. |Tuesday, Jul 232013, 3:02 AM| Comment!
Monday, Jul 222013, 11:02 AMTelefonica (TEF +1.5%) is in "advanced talks" to merge its German unit (went public last year) with KPN's (KKPNY.PK) E-Plus German mobile unit in a cash/equity deal, the FT reports. The deal is said to have the blessing of Carlos Slim - America Movil (AMX +0.5%) owns ~28% of KPN - and would reportedly result in Telefonica paying €6B ($7.9B) and owning a 50%+ stake in the combined firm, whose enterprise value is pegged at €16B ($21.1B). EU regulators could object to the deal antitrust grounds; Citi thinks it could yield €4B in synergies if it happens. Telefonica Deutschland +6% in Frankfurt, KPN +10.1% in Amsterdam. |Monday, Jul 222013, 11:02 AM| Comment!
Thursday, Apr 252013, 9:47 AMTelefonica (TEF -0.3%) is thinking of selling its German wireline ops, Bloomberg reports. One source adds Telefonica, which has been eying asset sales to pare its debt load, is open to sharing its mobile network with a rival or merging the business with KPN's (KKPNY.PK) E-Plus unit. Vodafone (VOD), which seems intent on growing its German wireline presence, is a logical buyer for the wireline business, which claims 2.4M broadband subs and has an estimated value of €2B ($2.6B). Liberty Global (LBTYA), reportedly eying Kabel Deutschland, is another possibility. |Thursday, Apr 252013, 9:47 AM| Comment!
Monday, Dec 172012, 6:37 AMVodafone (VOD) shares sink 2.9% in London after the company agreed to pay €1.4B for Dutch 4G spectrum in an auction that raised €3.8B in total from KPN, T-Mobile and Tele2, as well as from Vodafone. Investors are concerned about the amount operators are going to have to shell out in auctions across Europe, although cash-strapped governments are probably delighted. |Monday, Dec 172012, 6:37 AM| 1 Comment