AMSTERDAM, Oct 12 (Reuters) - KPN shares jumped
more than 7% on Monday, buoyed by possible takeover interest in
the main Dutch telecom provider.
Bloomberg on Friday reported that European private equity
firm EQT was considering a potential bid for KPN.
The buyout firm was said to be in early discussions with
possible advisers on the feasibility of a deal, without any
final decision having been made.
KPN and EQT declined to comment on the report.
Shares in KPN traded up 7.5% at 0805 GMT in Amsterdam,
reaching their highest level in three months. KPN shares had
lost 15% since the start of the year until Friday.
KBC Securities analysts on Monday said a deal could make
sense considering EQT's ownership of fiberglass supplier Delta
Fiber, which has the second-largest fiber footprint in the
Netherlands after KPN.
A deal could be opposed by the company and Dutch government.
A new law adopted this year gives the government the option
to block takeovers of Dutch telecom companies if they are deemed
a threat to national security.
KPN also has a strong defence against unwanted takeovers, in
the form of a foundation that can build up a controlling stake
to block any deal.
This proved successful in 2013, when KPN won a lengthy
battle against unsolicited interest from Mexico's America Movil
(Reporting by Bart Meijer; Editing by Edmund Blair)