Spain's Telefonica S.A. (TEF) plans to pay for a portion of the
possible takeover of KPN's (KPN.AE) E-Plus German mobile
telecommunications business with shares of its own German unit,
Telefonica Deutschland, a person familiar with the matter told Dow
Jones Newswires.
Following the deal, Telefonica would like to keep at least a 60%
stake in the German unit, but a capital increase may be necessary
to complete the transaction, the person added.
Telefonica SA holds a stake in Telefonica Deutschland of less
than 80%.
Earlier Monday, The Financial Times reported Telefonica is in
advanced talks to purchase KPN's German operations and that the
price would be around 6 billion euros ($7.91 billion).
In October 2012, Telefonica SA generated around EUR1.45 billion
in an initial public offering of more than 20% of Telefonica
Deutschland.
Write to Archibald Preuschat at
archibald.preuschat@dowjones.com
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