KPN shares sell off after takeover falls apart

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Associated Press

Posted on October 17, 2013 at 5:06 AM

Updated Thursday, Oct 17 at 5:06 AM

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.

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