Mexico: Plans for EU entry combust for America Movil’s Slim

Telco tycoon Carlos Slim was dealt a blow to his agenda of entering the EU market as his America Movil reportedly withdrew its $9.7 billion offer to acquire Royal KPN.

Reports say merger talks broke down between the Mexico-based wireless giant and the Dutch operator despite having received regulatory clearance within the Netherlands. The news was announced through a regulatory filing by America Movil.

In that filing, the company said it would not be possible to achieve the acquisition of a majority stake in the Dutch firm.

Reports say the failed merger thwarts Slim’s plans to expand the company outside of Latin America where experts say the company is struggling to gain traction.

The deal was crippled thanks to an independent foundation’s decision to use a protective measure to temporarily acquire about half of KPN in efforts to protect shareholders.

America Movil still holds about a 15 percent stake in KPN voting equity, equal to about a 30 percent share in the company.

Full content: Bloomberg

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