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KPN Deal Potential

12 October 2020 by jbchevrel

Koninklijke KPN N.V. (KPN) is a telecommunications provider based in the Netherlands, operating mainly there. They offer fixed and mobile telephony, fixed and mobile broadband Internet and television to retail consumers. To business consumers KPN offers Internet and mobile telephony services, as well as infrastructure and network related ICT solutions, including cloud hosting and Internet of Things connectivity. Today Dec 25 CDS widened by roughly +26bp, after it was reported that the PE firm EQT is considering a takeover of the co. in cash space, Sep 24s fell 2pts. KPN bonds have change-of-control clauses allowing holders to sell them back if the company loses its IG rating. According to some analysts though, a takeover of KPN will have to pass political hurdles. Such PE deals become common at this stage with entire segments of the European stock market still valued well below what it was, at the beginning of the year.