ATLANTA-BellSouth Corp. closed its joint-venture agreement with KPN Royal Dutch Telecom for ownership of E-Plus, the third-largest mobile operator in Germany.
The venture calls for both companies to share equal control of E-Plus, with BellSouth having the option to convert its ownership into 100 million shares in KPN and warrants to purchase 46 million additional shares.
“This is a true win-win for BellSouth and KPN and their respective shareholders,” explained F. Duane Ackerman, chairman and chief executive officer of BellSouth. “We have established a relationship with KPN that jointly positions us to take advantage of additional wireless opportunities throughout Europe. Also, for BellSouth shareholders, we have turned an initial investment of $150 million into an asset currently valued at $14 billion.”
