Swedish investor EQT would have approached KPN for an acquisition, Bloomberg news agency reports. The rumor immediately boosts the company’s stock market value.
Because of the message, KPN’s share price shot up about 8 percent on the Amsterdam stock exchange.
Deal or no deal
There have been rumors for some time that the Swedes are interested in KPN. The investor and the telecom company itself refuse to comment. “We do not respond to rumors from the market,” says a spokesman for KPN.
According to Bloomberg’s insiders, it is also not yet clear whether talks between the two parties can lead to a deal.
Takeover premium
Stock market commentator Durk Veenstra: “We have known since October 12 that EQT would be interested in KPN. Last Tuesday, the news came out that even several parties would be interested.”
The price plus that KPN is now booking in the AEX, of 7 to 8 percent, does not do him much. “A takeover leads to a premium of 25 to 30 percent, very different numbers than this. Then the share should come to 3 euros.”
Unrest
And, he says, EQT can bid on KPN, but can it also earn anything from it? “KPN has been working on cost savings for years, that is only possible to a certain extent. I am curious what tricks they would pull off.”
For the time being, the unrest among the staff will continue for a while, he thinks; a takeover by private equity is not necessarily good news. Consider, for example, the debacle that took place at HEMA.
