KPN closes wallet on mmO2 offer
PrintNo more cash on table
Posted in Mobile, 15th March 2004 13:11 GMT
Free webcast: Service level monitoring and management
Dutch mobile operator KPN will not increase its offer for mmO2.
KPN chief executive Ad Scheepbouwer said the deal was "off the table" and KPN would not increase its bid for mmO2 even if a competing bidder emerges, according to the Financial Times.
Scheepbouwer believes the valuation was fair. Reports suggest the offer put mmO2 shares at between 105 and 110p. mmO2 shares were trading slightly down on the news.
Scheepbouwer said the deal failed on five issues including sale price, board structure and operational management.
"All of these five issues were things that could have been solved in 24 hours if people had put their minds to it." He told the FT.
mmO2 wanted to announce that talks were taking place. KPN did not and the deal fell apart.
KPN recently began a €500m share buyback scheme which most observers believe makes the takeover less likely. But analysts at Dresdner Kleinwort Wasserstein believe the buyback is meant to increase KPN's share price and boost the takeover. ®
Related stories
KPN offer stokes mmO2 bid excitement
KPN to shed 800 jobs
KPN flogs 3G UK share to Hutch
Analyst Keynote: The Register Agile Data Center Summit
SMB phone systems product requirements worksheet
What Exchange can't do - and Dell can
Enabling The Agile Data Center
Checklist: signs you need to upgrade your business phone system
Dirty, dirty PCs: The X-rated picture guide
Top 500 supers - rise of the Linux quad-cores
Early adopters bloodied by Ubuntu's Karmic Koala
Sign up, sign up for The Register IT security newsletter