09 May 2012

MEXICO / NETHERLANDS: Carlos Slim Swoops Down On Troubled Dutch Royal Phone.

http://www.bloomberg.com/news/2012-05-08/america-movil-makes-offer-for-kpn-stake-at-8-euros-per-share.html


      Always the bargain hunter...Mexico's Carlos Slim...the world's richest man with $76 billion in assets...wants to increase his stake in troubled Dutch telephone company Royal KPN...from 4.8%...to 28%.
     Slim is offering..E8 per share or...E2.6 billion/$3.4 billion.
     Royal KPN has rejected his offer as too low.
     Slim's America Movil has reached a saturation point of 70% in Mexico...and recently minor pushback from regulators over pricing and competition.
     Yet...the WSJ reports that Am. Movil throws off $1 billion in profits...monthly!
     America Movil accounts for 63% of Slim's wealth.
     Though KPN's value has plunged by 30% this year...it still delivers...a 12% dividend!
     And with a bigger KPN stake...Slim could put a stake into the heart of his biggest competitor in Spain, Europe and Latin America...Telefonica.