Following the announcement of its bankruptcy on May 31, KPNQwest has begun to look for buyers for its assets. A number of companies are said to be interested in bidding for the company’s European fiber optic data network including BT Group, Cable & Wireless and AT&T.
AT&T has refused to comment on speculation that it is to bid for KPNQwest’s European fiber optic data network. AT&T had only recently withdrawn from negotiations to buy KPNQwest in its entirety. Analysts believe that a sum of around E200 million to E250 million could be raised by the sale of the network.
Other company assets to be sold include KPNQwest’s Eastern European business operations, which are rumoured to be close to being sold to a consortium, headed by an as yet unnamed bank for around E50 million.
Shares in KPNQwest fell 70% following the announcement of its bankruptcy. This left KPNQwest valued at E7 million. The company was valued at E42 billion at the peak of the technology boom. KPNQwest’s shares are to be delisted from the Euronext Stock Exchange on Thursday.
Royal KPN, one of KPNQwest’s parent companies, has announced that it will continue to fund the company for a few days in order to keep its network fully operational until KPNQwest’s existing customers can find alternative suppliers.