Telefonica/ KPN

Telefonica/ KPN
Last week it was a bunch of news rumoring the takeover of Telefonica on Dutch KPN, then of denies by both parties. Given the reactions, it is probably premature to speak of talks between the two companies. Top management of both companies can be aware of some contacts, without being yet directly involved in talks. It is a current performance in writing announcements not to say the truth but without lying.

Telefonica ' s strategy has changed, and after years of focus on LATAM, is repositioned in Europe. Its CEO, Cesar Alierta, has already sounded out KPN about a takeover, and people familiar with the matter say Telefonica recently broached with KPN the idea of beginning negotiations. Already a takeover bid from Telefonica on KPN failed in 2000 due to market conditions. So the deal has some logic, but needs more time to be finalized. The type of the deal (one-to-one or one-to multiple) is a parameter yet to be decided.