* Offer includes larger share in combined German business
* America Movil supports new Telefonica offer
AMSTERDAM, Aug 26 Spain's telecom giant
Telefonica agreed to improved terms for KPN's
German unit E-Plus in a deal that won support from the Dutch
telecom group's biggest shareholder, América Móvil.
But Mexican billionaire Carlos Slim's group, which said it
now owns 29.77 percent of KPN, reiterated it still plans to go
ahead with its proposed 7.2 billion euros ($9.65 billion) bid in
cash for the remaining shares in the Dutch group.
KPN, Telefonica and America Movil said on Monday that the
Spanish telecom firm had agreed to pay the equivalent of 8.55
billion euros ($11.46 billion) for E-Plus, compared with its
earlier offer of 8.1 billion euros.
KPN will still receive 5 billion euros in cash for E-Plus
and will have a bigger stake in Telefónica's German business of
20.5 percent, compared with the 17.6 percent previously agreed.
The improved agreed terms for the E-Plus deal remove
uncertainty. People close to the matter said at the time that
Slim's company viewed the offer as too low and fraught with
But KPN has so far not welcomed Slim's move to increase his
grip over the Dutch group, and an independent foundation that
has the potential to block KPN's takeover has expressed concern
over that proposed bid.
In a statement on Monday, América Móvil said it believed
that by acquiring a majority stake in KPN, both companies could
benefit from greater operational co-operation and co-ordination.
"By achieving majority ownership, AMX believes it will be
able to support KPN to a greater extent with its investment
plans in a rapidly changing European environment," the Mexican
group said in a statement.