KPN, Telefonica, America Movil reach agreement

Telefonica ups bid for KPN's German arm E-Plus to $11.4 billion, America Movil supports deal

Associated Press

AMSTERDAM (AP) -- Dutch telecom Royal KPN NV said Spain's Telefonica SA has agreed to raise its bid for KPN's German unit E-Plus to a package worth $11.4 billion, and KPN's largest shareholder America Movil will now support the deal.

In July KPN agreed to sell E-Plus in exchange for 5 billion euros in cash and a 17.6 percent stake in Telefonica Deutschland, worth 8 billion euros in all. Monday's deal, if approved, increases KPN's stake in Telefonica Deutschland to 20.5 percent.

America Movil, owned by Mexican billionaire Carlos Slim, has a stake of just under 30 percent of KPN. He responded to the E-Plus sale by saying he plans launch a bid to acquire the 70 percent of KPN he doesn't already own for 2.40 euros per share, or 7.2 billion euros.

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