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EU/Mexico: America Movil backs telco shake-up with KPN, Telefonica

By  |  August 26, 2013

Easing doubts of the deals, Mexico-based telecommunications operator America Movil announced its support for Spain’s Telefonica to acquire KPN’s German unit E-Plus as America Movil looks to acquire the rest of Netherlands-based KPN it doesn’t currently own. Telefonica upped its bid for E-Plus by 6 percent to $11.5 billion.

The transaction was initially thrown into doubt as America Movil is one of KPN’s top investors. The company, owned by tycoon Carlos Slim, announced it would press ahead with its plans to acquire the rest of KPN.

In addition to the telecommunications shake-up, reports say the deal promotes the move throughout the EU for consolidation within the mobile telco market. Telefonica is looking towards its acquisition of E-Plus as a tactical advantage against German rivals Deutsche Telekom and Vodafone.

Full Content: Reuters

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