PrePaidGSM.net Forum (Archived) - View Single Post - Telefonica to buy E-Plus from KPN

Donal · 30-07-2013, 11:19

Carlos Slim has been forced to enter a bidding war against Telefonica simply because America Movil and Telefonica are fierce global rivals.

In Mexico, the leaders of the current political consensus intend to significantly weaken Telmex and Telcel, so that competitors like Telefonica can gain a greater share of the Mexican telecoms market. America Movil sees salvation and future company growth in Europe.

In Europe, Telefonica is overburdened by debt and it recognises that America Movil's stake in KPN is a beachhead for Carlos Slim to enter into the wealthy German telecoms market. Telefonica sees salvation and future company growth in Latin America.

Center stage, KPN is playing its endgame. In Germany, limited radio spectrum purchases, limited network expansion and popular "discount" tariffs have maximised E-Plus's market value. Now is the perfect time for KPN to sell E-Plus.

America Movil and Telefonica are starring at each other, eye-to-eye. Both face difficulties raising the cash to buy KPN/E-Plus, and both will try and force an even higher purchase price on the other. The higher the final price, the higher the financial risk for the winning bidder.

Meanwhile, off-stage, AT&T is waiting to eat the corpse of the losing bidder. A heavily indebted Telefonica needs E-Plus to divert the unwelcomed attention of AT&T. And a diminished America Movil needs more than a toe-hold in Europe to divert AT&T's attention.

Final bids please! This is the last chance to bid for E-Plus, and to escape from AT&T!

	(#9)
Donal (Offline) Junior Member Amateur Member Posts: 25 Join Date: 04 Jul 2013 Country:	30-07-2013, 11:19 Carlos Slim has been forced to enter a bidding war against Telefonica simply because America Movil and Telefonica are fierce global rivals. In Mexico, the leaders of the current political consensus intend to significantly weaken Telmex and Telcel, so that competitors like Telefonica can gain a greater share of the Mexican telecoms market. America Movil sees salvation and future company growth in Europe. In Europe, Telefonica is overburdened by debt and it recognises that America Movil's stake in KPN is a beachhead for Carlos Slim to enter into the wealthy German telecoms market. Telefonica sees salvation and future company growth in Latin America. Center stage, KPN is playing its endgame. In Germany, limited radio spectrum purchases, limited network expansion and popular "discount" tariffs have maximised E-Plus's market value. Now is the perfect time for KPN to sell E-Plus. America Movil and Telefonica are starring at each other, eye-to-eye. Both face difficulties raising the cash to buy KPN/E-Plus, and both will try and force an even higher purchase price on the other. The higher the final price, the higher the financial risk for the winning bidder. Meanwhile, off-stage, AT&T is waiting to eat the corpse of the losing bidder. A heavily indebted Telefonica needs E-Plus to divert the unwelcomed attention of AT&T. And a diminished America Movil needs more than a toe-hold in Europe to divert AT&T's attention. Final bids please! This is the last chance to bid for E-Plus, and to escape from AT&T!