KPN closes wallet on mmO2 offer

No more cash on table

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. ®

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