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News Summary: KPN plummets on new shares plan

The Associated Press

DOUBLE-DIGIT STOCK DROP: Shares of Royal KPN NV plunged after the Dutch telecommunications company said it plans to issue €4 billion ($5.4 billion) in new shares to cut debt. The planned share issue is huge relative to KPN's size, nearly equal to its market value.

INTO THE RED: The company also said it swung to a fourth-quarter loss of €162 million from a net profit of €176 million a year earlier. Sales fell 3.3 percent to €3.38 billion.

ANNUS HORRIBILIS: The announcement caps a bad 2012 for KPN, including a large write-down on its business, the resignation of its CFO, dividend reductions and a costly bidding war to obtain frequencies for "4G," high-speed mobile Internet services through 2030.