Royal KPN surges as PE firm EQT said to consider takeover

Royal KPN shares surged on Monday following a report that private equity firm EQT is considering a takeover of the Dutch telecommunications company.

On Friday, Bloomberg cited sources as saying that EQT is in the early stages of discussing the feasibility of a deal with potential advisers.

It was understood that no final decisions have been made and the sources said there’s no certainty EQT’s deliberations will lead to an offer.

At 0955 BST, KPN shares were up 7.3% at €2.40.

Deutsche Bank pointed out in a research note that this is not the first time there have been reports of potential M&A interest in KPN, with press reports last year that Brookfield was considering a bid.

"We are not surprised at the timing of the M&A news given on the one hand, telco share prices have been depressed and on the other, we have seen continued interest from infrastructure funds in the sector, and with recent valuation multiples suggesting low hurdle rates," it said.