KPN not interested in buying Spain's Yoigo -exec

THE HAGUE Nov 13 (Reuters) - Dutch telecoms group KPN (KPN.AS) is not interested in buying loss-making Spanish mobile operator Yoigo from TeliaSonera (TLSN.ST), a KPN executive said on Thursday.

TeliaSonera said last month that its Spanish operations will likely post a 2008 core earnings loss of more than 1 billion Swedish crowns ($124 million), adding it would consider "different options" for the business.

Eric Hageman, finance chief of KPN's international mobile business, told Reuters that the Dutch group would stick to operating in Spain as a virtual network operator, buying wholesale capacity from Orange (FTE.PA).

Hageman said to sustain shareholder returns, KPN needed to make sure it continued to generate cash.

"If you are looking at a transaction that would burn money, that's a big problem for us," he said, adding one consideration was whether it was possible to make Yoigo cash flow positive within three years.

"Are we interested in buying Yoigo? No," Hageman said.

Also working against the Spanish operator is its limited network coverage -- it relies on a roaming agreement with Telefonica (TEF.MC) in areas that it does not reach.

KPN has a reputation for a disciplined approach to potential takeovers, and one of the company's key appeals for investors is a strong focus on dividends and share buybacks. (Reporting by Niclas Mika)