EQT AB (publ) (OM:EQT) is still interested in buying Koninklijke KPN N.V. (ENXTAM:KPN), two sources familiar with the matter said on May 3, 2021, even as shares in the company slid after it rejected the private equity firm's takeover proposal. KPN said on May 2, 2021 the proposal by EQT AB and another by KKR & Co. Inc. (NYSE:KKR) of the United States, which it has also rejected, lacked merit.

Separately the Dutch government repeated it has the power to block unwanted takeovers of telecommunications companies. The people familiar with the matter said EQT still believes KPN might be willing to entertain a plan that would enable it to invest more heavily in infrastructure. EQT would not have demanded dividends, which KPN pays to its shareholders every year, and would have been willing to spend €4 billion on network investments, they said.

But KPN said in its statement that EQT's proposals would not provide "tangible and material added value". It said its boards had considered the interest of not only shareholders but also "customers, employees, creditors and bondholders, suppliers, business partners, government and Dutch society at large". EQT declined to comment.

KPN Chief Executive Officer Joost Farwerck on April 30, 2021 said he was not looking to sell the company, pointing out that it is well-funded and investing heavily in infrastructure for the first time in 26 years. He cited both KPN's own plans and its joint venture with pension fund giant ABP launched in March to rollout fibre to rural areas.