June 16, 2014 / 3:26 PM / 3 years ago

EU regulators to clear Telefonica's 8.6 bln euro E-Plus bid - sources

BRUSSELS, June 16 (Reuters) - EU antitrust regulators will approve Telefonica’s 8.6-billion-euro ($11.71 billion) bid for KPN’s E-Plus unit after it promised to cede a fifth of the combined company’s network capacity to rivals, two people with knowledge of the matter said.

“The European Commission will clear the deal,” one of the people, who declined to be named because the European Union decision is not yet public, said on Monday.

Europe’s biggest telecoms provider by revenue will cede at least 20 percent of the capacity of the combined company’s network to MVNOs which piggyback on their bigger competitors’ infrastructure, one of the people said.

The aim is to create up to three mobile virtual network operators (MVNO) to take the place of E-Plus after regulators said the merger would reduce competition in Europe’s biggest market. (Reporting by Foo Yun Chee, editing by Robert-Jan Bartunek)

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