Bloomberg News

KPN CEO May Consider Acquisition to Expand German Business

October 03, 2011

(Updates with KPN customers in Germany in third paragraph.)

Oct. 3 (Bloomberg) -- Royal KPN NV Chief Executive Officer Eelco Blok said the largest Dutch phone company may consider an acquisition in Germany because it’s interested in taking part in consolidation in that market.

“If something is available and the price is right we will look at it,” Blok said at a conference in Brussels today, adding that there’s nothing for sale at the moment. He said KPN won’t sell its German E-Plus division.

The E-Plus wireless unit added 558,000 customers in Germany in the second quarter for a total of 21.5 million, KPN said July 26. The unit’s market share by service revenue climbed to 15.8 percent in the quarter from 15.7 percent a year earlier.

“Germany is a very important market for KPN and we see opportunities to grow further,” Blok said on a conference call in July.

While the legal process continues for AT&T to purchase Deutsche Telekom’s T-Mobile USA unit, there is an opportunity for consolidation in the German wireless market, Robin Bienenstock, an analyst at Sanford C. Bernstein, said in a note to investors last week. There is “material risk” KPN will be left out of potential consolidation, and will become a distant third in the German market, Bienenstock said.

--Editors: Robert Valpuesta, David Risser.

To contact the reporters on this story: Matthew Campbell in Paris at mcampbell39@bloomberg.net; Maaike Noordhuis in Amsterdam at mnoordhuis@bloomberg.net

To contact the editor responsible for this story: Simon Thiel at sthiel1@bloomberg.net


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