* EQT has approached KPN and Dutch government officials -
source
* Discussions are at an early stage - source
* Dutch government has power to block a takeover
* EQT could use DeltaFiber for partial merger - source
(Recasts, adds sourcing, context)
LONDON/AMSTERDAM, Nov 12 (Reuters) - European private equity
fund EQT is holding preliminary talks with KPN NV over
a possible takeover bid that could value the largest Dutch
telecommunications company at about $13 billion, a source with
knowledge of the matter said.
EQT has approached both KPN's management and the Dutch
government in recent weeks to discuss a possible deal, the
source said.
The buyout fund, founded in Sweden in 1994 and led by Chief
Executive Christian Sinding, is working with JPMorgan on
a possible deal, the source said, but negotiations are still at
an early stage and no deal is certain.
KPN's top investor America Movil, which owns 16%
of the Dutch firm, has not been informed of the discussions,
which were first reported by Bloomberg, the source added.
EQT and KPN declined to comment while America Movil was not
immediately available.
KPN shares rose almost 6.5% on Thursday to 2.64 euros.
On October 28, KPN boss Joost Farwerck told reporters during
the company's third-quarter results that KPN was not planning on
being bought but remained open to interest.
"If somebody comes along with an interesting proposal, we
can always listen, but we're not focused on it," he said.
KPN, which has a market value of 11 billion euros, competes
with VodafoneZiggo and T-Mobile in the highly concentrated Dutch
market and has suffered a decade-long decline in sales. Farwerck
has said he does not expect a quick revival.
EQT owns the Netherlands' second-largest fiber optic
network, DeltaFiber, and may use it as a vehicle to buy parts of
KPN's fiber business and extract some synergies, or cost
efficiencies, if an outright takeover fails to win the blessing
of Dutch government officials, the source said.
In May, the Dutch government passed a law that allows it to
block takeovers of companies in the telecommunications sector
that it deems to be not in the interest of national security.
"Any deal for KPN needs to be friendly. EQT will never go
hostile," the source said.
The Netherlands' Economic Affairs ministry, which oversees
KPN, did not respond to requests for comment on Thursday.
An attempt to buy KPN for 8 euros per share in 2013, by
America Movil, floundered on KPN's poison pill defenses, which
are still in place.
(Reporting by Pamela Barbaglia in London and Toby Sterling in
Amsterdam;
Editing by Jane Merriman, Elaine Hardcastle, Kirsten Donovan)