By Pamela Barbaglia and Toby Sterling
LONDON/AMSTERDAM (Reuters) – European non-public fairness fund EQT (NYSE:) is holding preliminary talks with KPN NV (AS:) over a potential takeover bid that might worth the biggest Dutch telecommunications firm at about $13 billion, a supply with information of the matter stated.
EQT has approached each KPN’s administration and the Dutch authorities in current weeks to debate a potential deal, the supply stated.
The buyout fund, based in Sweden in 1994 and led by Chief Govt Christian Sinding, is working with JPMorgan (N:) on a potential deal, the supply stated, however negotiations are nonetheless at an early stage and no deal is definite.
KPN’s high investor America Movil (MX:), which owns 16% of the Dutch agency, has not been knowledgeable of the discussions, which have been first reported by Bloomberg, the supply added.
EQT and KPN declined to remark whereas America Movil was not instantly out there.
KPN shares rose virtually 6.5% on Thursday to 2.64 euros.
On October 28, KPN boss Joost Farwerck informed reporters through the firm’s third-quarter outcomes that KPN was not planning on being purchased however remained open to curiosity.
“If any individual comes together with an attention-grabbing proposal, we will at all times hear, however we’re not centered on it,” he stated.
KPN, which has a market worth of 11 billion euros, competes with VodafoneZiggo and T-Cellular within the extremely concentrated Dutch market and has suffered a decade-long decline in gross sales. Farwerck has stated he doesn’t anticipate a fast revival.
EQT owns the Netherlands’ second-largest fibre optic community, DeltaFiber, and should use it as a automobile to purchase components of KPN’s fibre enterprise and extract some synergies, or value efficiencies, if an outright takeover fails to win the blessing of Dutch authorities officers, the supply stated.
In Could, the Dutch authorities handed a legislation that permits it to dam takeovers of firms within the telecommunications sector that it deems to be not within the curiosity of nationwide safety.
“Any deal for KPN must be pleasant. EQT won’t ever go hostile,” the supply stated.
The Netherlands’ Financial Affairs ministry, which oversees KPN, didn’t reply to requests for touch upon Thursday.
An try to purchase KPN for eight euros per share in 2013, by America Movil, floundered on KPN’s poison capsule defences, that are nonetheless in place.
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