* KPN offering shares at 1.06 euros each
* Shareholder America Movil to subscribe to the issue
BRUSSELS, April 25 (Reuters) - KPN launched a 3 billion euros ($3.90 billion) rights issue at a 35 percent discount on Thursday to help the debt-laden telecoms firm fight tough competition and recover from a costly frequency auction.
The 2 for 1 share issue is at 1.06 euros per share, a 35.1 percent discount to an ex-rights price, a theoretical share price following the issue.
KPN said Carlos Slim’s America Movil AMXL.MX>, which holds almost a third of the company, has committed to subscribe to the issue.
The company has outstanding debts of 14.4 billion euros according to Reuters data. It has already sold a 2 billion euro hybrid bond and disposed of a string of assets to keep its debts under control.
Earlier this week it cancelled its dividend for this year and next after its core profit fell 12 percent.
“With a discount of 35 percent it makes a lot of sense to join in to the rights issue,” an Amsterdam-based analyst said.
The exercise period for the shares runs from 0700 GMT on April 26 until 1300 GMT May 14.
The rights offering is fully underwritten by a syndicate of banks led by Deutsche Bank, Goldman Sachs and J.P. Morgan acting as joint global coordinators and joint bookrunners.
ABN AMRO, ING and Rabobank International are acting as joint bookrunners; Barclays, BofA Merrill Lynch, Citigroup and UBS are acting as co-bookrunners and BNP Paribas, Credit Suisse, Societe Generale and UniCredit are the co-lead managers, while Rothschild is acting as financial adviser to the company.