The Swedish investor EQT is reported to be interested in acquiring KPN and is talking to advisors about the possibilities, according to initiates. KBC Securities analysts see a lot of Bears on the road, but also points to the strategic logic behind a potential deal. The telecom company itself and the investor refuse to comment. According to the sources, the discussions between EQT and the advisors were still at an early stage and it is not certain whether the Swedes will actually come forward. According to KBC, there are several stumbling blocks around the takeover. For example, there is the KPN Foundation which could possibly create a protection wall. There is also no political preference for foreign ownership of key strategic companies, such as KPN with its telecom network. So much depends on the structure of a possible takeover. EQT is, via Delta Fiber, the largest player in the field of fibre in the Netherlands after KPN. A takeover of KPN by a joint network would make sense. Development costs are falling and scale is fast. Market recoverers note that, in view of EQT’s interest in FPN, but also of other recent telecom deals, a different view should be taken of valuations in the sector. ING believes that, if the rumor is correct, the very early leak of the story makes it rather unlikely that an offer will succeed. In addition, according to the experts, the government has been able to stop a takeover since this year for reasons of national security. The bank also points to the aforementioned Foundation and its protection wall. This makes the defence of KPN ‘almost impenetrable’. So a so-called friendly offer is definitely necessary. EQT has a “attractive wedding present” with Delta Fiber. KBC increased KPN’s advice on Monday from hold to accumulate. The target is 2.90 euros. ING has a hold advice and a price target of EUR 2.80. The share of FPN was 7.3% higher at 2.40 euros around 9.30 a.m. With this, the telecom company was the strongest player in the AEX in Amsterdam.
