KPN takes another look at mmO2

9 Mar 2004

Speculation is rising that KPN is planning to launch an improved bid for mmO2. With the pair having been involved in unsuccessful discussions last month, shares in mmO2 rose by 4% yesterday after KPN declined to comment on the fresh bid rumour. Later in the day, however, a company spokesperson went on record as saying that ‘there is nothing new’ to report, while mmO2 dubbed the bid talk ‘just another round of speculation’. Analysts see the pair as a good fit, particularly in Germany where mmO2 is the fourth largest operator in the country and KPN’s E-Plus is the third largest; an alliance between the two would create a company capable of challenging the might of top two players, T-Mobile and Vodafone.

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