No sooner had the dust settled after last week’s bidding battle over AT&T Wireless in the US, than Dutch operator Royal KPN NV kicked it up in Europe with a bid for British-based mmO2 PLC.
A spokesman for mmO2 told ComputerWire on Friday that, the firm had received and considered a proposal, but discussions have ceased.
mmO2 did not identify the putative purchaser. However, KPN reportedly confirmed on Friday that it had made an offer to mmO2.
KPN appeared to have been looking for a quick deal. In the wake of deal with the Dutch tax authorities last week, it recorded a tax gain of 6bn Euros, which will boost 2003 net income by 1bn Euros. It is due to report its annual results on Monday.
There was no indication of the size of last week’s offer. mm02’s market capitalization is currently hovering around the $15bn mark.
mmO2’s spokesman said that its board was bound to consider any offer that was in the interests of shareholders. He also said that the company’s stated strategy is to grow organically.
The two companies have been pitched as potential partners in the past. Both have struggled in the crucial German market, and a possible tie-up between their operations has been mooted before.
However, mmO2 may not feel it needs to partner in Germany in the future. The firm’s spokesman said on Friday that while it is fourth place in the German market, it is the fastest growing player in the country.
This article is based on material originally published by ComputerWire