Carlos Slim's América Móvil Withdraws KPN Bid

Mexican telecommunications company América Móvil said that it is withdrawing its offer to buy out Dutch operator Royal KPN, after a Dutch foundation took an almost 50% stake in the European company.

América Móvil, controlled by Mexican billionaire Carlos Slim, said it was offering €2.40 a share, or about €7.2 billion ($9.7 billion), for the roughly 70% of KPN that it didn't already own. A foundation set up to protect KPN interests later exercised a call option to take 50% minus one share of KPN, which diluted existing shareholders and virtually blocked the deal. América Móvil is Latin America's largest wireless service provider with 262 million mobile subscribers in 18 countries.