Carlos Slim's America Movil SAB (
), which is bidding for a bigger stake in Royal KPN NV (KPN), said
the investment will boost profit, helped by the Dutch phone
company's exposure to Germany and the Netherlands, Bloomberg
America Movil has no interest in bidding directly for KPN's
German E-Plus mobile-phone unit and regards the Dutch company's
turnaround plan as credible, America Movil Chief Financial Officer
Carlos Garcia-Moreno said at a meeting in London yesterday,
according to a Bank of America Merrill Lynch note to clients,
obtained by Bloomberg News.
The planned KPN deal may increase America Movil's net income by
5% before synergies, Bank of America Merrill Lynch said, without
specifying a time period. KPN is an attractive investment as it
operates in ""solid" countries such as Germany and the Netherlands,
which are less affected by the European debt crisis.
Representatives for America Movil and Bank of America Merrill Lynch
declined to comment.
America Movil, based in Mexico City and owned by Slim, the
world's richest man, this month offered 2.6 billion euros ($3.3
billion) to boost its 4.8% stake in the former Dutch
telecommunications monopoly to as much as 28%. KPN, based in The
Hague, said the unsolicited 8-euro per share cash offer is too low
and hired Goldman Sachs Group Inc. (
) and JPMorgan Chase & Co. (
) to evaluate options.
Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.