AMX Launches Dutch Tender

As planned, America Movil (AMX) has launched an offer to buy up to 22.9% more of Dutch telecom KPN, it says, and bring its stake as high as 27.7%. The Mexican telecom aiming to expand in European markets while valuations are low is offering KPN holders EUR8.00 per share through June 27 for up to 325m shares, or about $3.25bn total. KPN says it will review the bid, while reiterating the view that the offer is too low. KPN shares closed Wednesday at EUR7.67. KPN hired Goldman Sachs and JP Morgan to advise it on its alternatives, which analysts say also include selling off assets including its Belgium and German units. The German operations – in a market where indigenous players have little room to increase market share – are said to be of particular interest to AMX. The move is also seen as a way to outpace rival Telefonica in Europe. Analysts have said the Spanish telecom, which competes with AMX on several continents, would be unlikely to match AMX’s offer. AMX has said it has no plans to go after a majority stake. Officials have said they would not increase the offer price if the process fails. Deutsche Bank is advising AMX.