Telefonica won't meddle in Slim's KPN bid - source

MADRID, June 20 (Reuters) - Spanish telecoms group Telefonica has no plans to interfere in a hostile bid for Dutch peer KPN by Carlos Slim's America Movil , a source with knowledge of the matter told Reuters.

"They're not going to get involved," the source told Reuters on Wednesday.

Telefonica has been considered a possible white knight for KPN's German business, E-Plus, which the Dutch company has said it could sell in a renewed attempt to persuade shareholders to reject Slim's $3.25 billion bid for up to 28 percent of KPN. (Reporting By Robert Hetz; Editing by Tracy Rucinski)