AMSTERDAM, Feb 27 Dutch telecom KPN on
Wednesday said two top executives from Mexico's America Movil,
which holds an almost 30 percent stake in KPN, have been
nominated to its supervisory board.
America Movil Chief Financial Officer
Carlos Garcia Moreno and Chief Operating Officer Oscar von
Hauske were nominated to KPN's eight-member supervisory board,
KPN said in a statement.
The two appointments were proposed by the KPN supervisory
board itself and will be voted on at the Dutch company's annual
general shareholders' meeting on April 13.
The appointments are likely to be approved as America Movil
has de facto control of KPN due to traditionally low turnout at
the Dutch company's shareholder meetings.
America Movil, Latin America's largest phone company, last
week agreed to up its investment in KPN as part of that
company's 4 billion euro capital raise.
At the same time, the two companies agreed that America
Movil would take the two seats on KPN's supervisory board.
KPN said four members of its existing supervisory board will
step down, although two of those members are available for
Shares in America Movil, which is controlled by the world's
richest man Carlos Slim and his family, have fallen almost 15
percent since the company reported a weak fourth-quarter profit
on Feb. 12, hurt by foreign exchange losses tied to the drop in
value of its KPN stake.
KPN shares have declined around 65 percent since America
Movil started building up a 29.77 percent stake last June.
A similar acquisition of stock in Telekom Austria
by America Movil is also under water.
The recent foray into Europe by America Movil was a mistake,
veteran emerging market investor Mark Mobius, chairman of
investment manager Franklin Templeton's emerging market group,
told reporters on Wednesday.
Investors broadly say the company has not clearly explained
its European investment strategy.
America Movil shares were down 1.1 percent at 13.45 pesos.