KPN has said an offer made by América Móvil to up its stake in the Dutch incumbent “substantially undervalues” the company.
AM, controlled by world’s richest man Carlos Slim, is looking to up its stake from 4.8 percent to no more than 28 percent.
The Mexico-based firm offered €8 a share, a premium of approximately 23.5 percent over the closing price of KPN shares on 7 May.
“KPN is of the opinion that €8 per ordinary KPN share substantially undervalues the company,” it said in a statement.
“KPN will seek further clarification as to AM’s intentions. In the meantime, KPN will explore all strategic options.”
AM is the leading provider of wireless services in Latin America with 246 million wireless subscribers and revenues of approximately €40 billion.
In a statement made to the financial markets, AM said it had been evaluating expanding its operations outside of the Americas in order to provide greater stability to its cash flow and profitability and contribute to its credit ratings.
“AM's aim is to acquire an important minority stake in KPN, which has an attractive position in important European markets,” it said.
“América Móvil supports the strategic plans of KPN's management, as they have been communicated publicly to date and expects to develop a constructive long-term relationship with the company’s management, supervisory board and shareholders.”
It added that it hoped to explore potential areas for co-operation, including roaming, procurement, distribution of content and marketing arrangements.
KPN’s share price has risen over two percent since the news broke.