World's richest man Carlos Slim seeks European expansion with Dutch KPN offer

The world's richest man, Mexican Carlos Slim is seeking to expand his empire further in Europe with the acquisition of a larger stake in Dutch telecommunications company KPN. Slim's América Móvil already has a 4.8 percent stake in KPN and is offering a USD 3.25 billion, or around EUR 8 per share, for no more than 28 percent of the company, according to América Móvil. KPN's share price has fallen considerably over the last year, and, according to information released by América Móvil, the offered price would represent a 23.5 percent premium on the May 7 share price. The company is keen to expand further in Europe and reports that geographic diversification has played an important part in keeping América Móvil's cash flow and profits stable. Slim's firm also indicates that it “supports the strategic plans of KPN's management” and “expects to develop a constructive long-term relationship with the company’s management, supervisory board and shareholders.” América Móvil's offer for shareholders to tender their stock opened yesterday ( May 30 ) and is valid until June 27. Founded in 2000 and headquartered in Mexico City, América Móvil is one of the world's largest telecommunications companies. As of March 31, 2012, it had 246 million wireless subscribers and is present across the Americas and employs nearly 150,000 people. In 2010 the company recorded revenues of nearly USD 50 billion and profits of just over USD 8 billion. KPN was founded in the 19th century and remained state owned until its privatization in 1989. Headquartered in the Hague, Netherlands, it is active across the telecoms market, with mobile and fixed phone, internet, digital television and IT services. At end 2010 the company's total assets valued just under EUR 23 billion. Liam Lever, liam@romania-insider.com