AMSTERDAM, The Netherlands-KPN, the former telecommunications monopoly in the Netherlands, plans to offer a new issue of shares to the public this year. The Dutch government currently holds a 43.5-percent stake, which will be reduced through the sale, in KPN.
Funds from the sale will be used to acquire Universal Mobile Telecommunications System licenses across Europe. KPN’s mobile subsidiary is currently participating in the country’s auction of five UMTS licenses. In addition, international press reports have said KPN is planning a loan that would allow it to buy out France Telecom’s stake in KPN Orange, a mobile operator in Belgium.
Merger talks between KPN and Spain’s Telefonica broke down earlier this year because of Spanish government concerns about the Dutch government’s sizable holding in KPN.
Details on the size and timing of the share offering are expected in August.
