Earlier this week it was announced that KPN had rejected two takeover proposals. In addition to EQT and Stonepeak, the American private equity fund KKR also made an unsuccessful bid for the telecom company.
Sources told Bloomberg that EQT and Stonepeak were committed to emphasizing their long-term interest in KPN. It was in this light that they promised the management extra billions for the expansion of the network, on top of the 1 billion that KPN itself will already allocate for this each year. In addition, they would have wanted to commit to KPN for several decades, while investment funds often hope to grab their profit after less than ten years.
It is virtually impossible to take over KPN without the approval of the management. The company has built up a protective structure against a hostile bid through a foundation. In addition, the cabinet can stop unwanted takeovers of telecom companies, for example because of concerns for national security.
According to Bloomberg, EQT and Stonepeak have not completely dismissed the acquisition. That is different with KKR, which has almost given up the takeover attempt, according to insiders. KKR recently announced another major investment in the Dutch telecom market. The American company is investing money in a partnership that wants to connect 1 million addresses in Dutch cities to fiber with T-Mobile.
EQT, Stonepeak and KKR declined to comment to Bloomberg. KPN also did not want to respond.
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