Following América Móvil’s failed bid to takeover KPN last year, the Dutch government is now floating a proposal that would allow it to intervene in any telecom acquisition that had “implications for national security.”
In a June 10 letter to parliament, the Dutch minister of economic affairs, Henk Kamp, outlined measures the government could take to prevent any misuse of the country’s telecom infrastructure. Under the proposal, any company deemed to hold vital infrastructure in Holland, such as KPN, would have to seek the government’s “non-opposition” to decisions to sell that infrastructure, sell a controlling stake in the company, or change its management or the makeup of its board.
The move is a clear response to the América Móvil’s KPN takeover bid. At the opening of the letter Kamp claims to be “meeting a commitment to consider whether supplementary provisions are necessary to effectively safeguard public interests in general, and national security in particular, in the event of a takeover of a telecommunications company like KPN.”
The Dutch telecom bill is expected to be formally introduced into parliament in spring 2015.
América Móvil withdrew it’s $10 billion offer to buy out The Hague-based KPN in October 2013. América Móvil still owns a 24.8% stake in KPN. América Móvil has since found a foothold in Europe by securing a controlling stake in Telekom Austria, in partnership with a holding company for the Austrian government.
More telecom news from Europe:
Vodafone’s transparency report revealed that 29 governments accessed its networks. In the first report of its kind from any telecom, London-based Vodafone revealed that the it had responded to requests from intelligence agencies from 29 countries. After the report was released, Deutsche Telekom is considering broader disclosures as well.
Iliad acquisition of Bouygues Telecom hits $4 billion road block. Sources told Businessweek that the two companies are $4 billion apart over a potential deal that would combine the No. 3 and No. 4 carriers in France. Iliad has reportedly offered $5.4 billion to $6.8 billion for the company, while Bouygues wants $9.5 billion to $10.8 billion. The leading French carrier, Orange, is also reportedly interested in buying Bouygues, but it may face more regulatory hurdles to do so.
EU requires all companies operating in the region to comply with its data protection rules. The European Commission declared on June 6 that companies operating in Europe have to adhere to the EU’s privacy rules, even if the companies are based outside of Europe. The ruling is part of a wider effort to reform privacy laws in the wake of the U.S. spying scandal.
Need more European telecom news? Have a little bird tell you all about it. Follow me on Twitter!
89
previous post
