Report: Telfonica to buy Dutch telecom KPN
Spain's Telefonica de Espana has reportedly made an offer to acquire Dutch telecom KPN NV for $24 billion in a move to expand its reach in Europe.
The Wall Street Journal reported Sunday night that the two companies were putting together negotiating teams to work out the details; however, neither Telefonica nor KPN had any official comment.
Telefonica tried unsuccessfully to buy KPN in 2000; however, the Telefonica board backed out.
Should the deal go through this time, Telefonica would take over KPN's subscriber base in Belgium, Germany and the Netherlands, giving it enough of a geographical market to begin offering fixed-rate services to business travelers.
The Journal predicted that the deal would encourage other European telecoms to consider their own mergers or joint ventures.
Copyright 2005 by United Press International