Carlos Slim's Movil To Buy Royal KPN For €7.2bn

Wireless carrier America Movil, owned by the world's second richest man Carlos Slim, said it has put together the funds required to buy troubled Dutch telecoms firm Royal KPN.

Slim's offer could block Spanish firm Telefonica's attempts to acquire KPN's German unit E-Plus.

America Movil said it has entered into binding credit facilities, subject to conditions, with reputable global financial institutions to finance its €7.2bn (£6.1bn , $9.6bn) bid for the Dutch carrier.

The €2.40 per share bid would raise the Mexican firm's stake in KPN to more than 50% from about 30% at present. America Movil also said it would submit its offer to Dutch financial authorities.

KPN's stock price was trading 1.9% higher to €2.27 at 3:56pm in Amsterdam. The company's shares have plummeted by some 40% this year.

Shortly after Slim's offer, KPN said it would convene an investor meeting to seek approval for its proposed €8.1bn deal to sell E-Plus to Telefonica .

Investors holding KPN shares as on 4 September will be allowed to cast their vote on 2 October, KPN said. Shareholders have until 26 September to register for the vote.

Telefonica wants to acquire E-Plus to strengthen its position in Germany, Europe's strongest economy, where it has to compete with market leaders Deutsche Telekom and the UK's Vodafone.

Slim did not reveal his stance on the E-Plus deal. However, America Movil's near 30% stake and the traditionally low turnout at KPN investor meetings could help Slim to block the deal.

KPN, which is struggling to maintain profits, announced in April that it would not dole out any dividend for 2013 and 2014. Chief Executive Eelco Blok estimated that the move would save the company €40m to €50m a year.

The company also slashed over 1,000 jobs in the Netherlands in the first quarter of 2013.