AMSTERDAM, The Netherlands—Dutch telecommunications giant KPN will buy the remaining 22.5-percent interest in German mobile-phone operator E-Plus that it does not already own from U.S.-based BellSouth for about US$1.06 billion in KPN stock, giving KPN full control of E-Plus.
As part of the deal, KPN will pay back a US$416 million loan to BellSouth and will consolidate US$1.8 billion in E-Plus debt previously held by both companies. As a result, the already heavily indebted KPN will further increase its net debt by about US$800 million. BellSouth said it will receive an after-tax gain of about US$900 million from the deal.
In December 1999, BellSouth acquired 100 percent of E-Plus, Germany’s third-largest mobile operator, by exercising its right of first refusal to stop a bid by France T
