Boston, MA 10/23/2013 (wallstreetpr) – America Movil SAB de CV (ADR) (NYSE:AMX) was on route to ink a deal with KPN to buy out their Deutschland unit. However due to a disagreement between the companies on the price after a week of intense negotiations, AMX called off the deal. The aftermath of this was a further rise of the company’s shares after the withdrawal announcement. AMX was willing to buy the company at a price of $9.7 billion but KPN insisted on a price of $10.7 billion. According to KPN the additional amount was to help cover for the tax ruling as it awaited the sale of its German unit to Telefonica Deutschland.
On the other hand AMX insisted that the price on the table was enough to cover for the tax ruling. Furthermore the AMX stated that the Dutch mobile market was already experiencing intensifying competition. Because of the disagreement the deal was called off.
However in a recent interview, the CEO of the Dutch telecom group Mr. Eelco Blok has indicated that the failed deal is not dead and could be revived. Even though he refrained from mentioning how much they were intending to ask, he did mention that they might be going back around the table. However despite the release of the news, KPN’s shares still had a rough day at the Amsterdam stock market. The company’s shares plunged down 8.6%.
On the other hand, AMX despite lacking a steady pattern in the shares traded, the company had managed to keep a positive of 4.23% over a period of the last three months. With the expected revival of the talks, it is only a matter of time until the impact of those talks is witnessed on either of the companies’ shares as well as the prime outcome of the talks.