AMSTERDAM (AP) — Shares in Dutch telecoms company Royal KPN NV are falling after Mexican billionaire Carlos Slim followed through on a threat to walk away from a takeover bid.
In early Amsterdam trading Thursday, KPN shares were down 8.8 percent to 2.22 euros ($3.01), well below the 2.40-euro per-share offer promised by Slim's America Movil. But the sell-off was not the bloodbath some investors had feared: shares were well below 2 euros when Slim began his approach in July.
The independent KPN Foundation had branded Slim's offer — of 7.2 billion euros ($9.8 billion) for the 70 percent stake he didn't already own — as hostile. It blocked it by issuing new shares and told him to negotiate.
Movil said Wednesday KPN's management demanded a higher bid as a prerequisite to talks.