Reuters: Mergers News: UPDATE 1-KPN to kick off BASE sale in two weeks - sources

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UPDATE 1-KPN to kick off BASE sale in two weeks - sources Jun 8th 2012, 18:09 Fri Jun 8, 2012 2:09pm EDT By Sophie Sassard and Victoria Howley LONDON, June 8 (Reuters) - KPN will fire the starting gun on the sale of its Belgian BASE mobile phone business in about two weeks, people familiar with the matter said, as it tries to fend off a bid for the whole group from Carlos Slim's America Movil. The Dutch telecoms group will send out sales information to private equity firms and a number of companies, including Belgium's third-largest cable company Telenet, four people said. KPN hopes to raise 1.6 billion to 1.8 billion euros ($2.24 billion) from the disposal of BASE, Belgium's third-biggest mobile phone company, equal to 5.5 to 6.5 times estimated core earnings (EBITDA) for this year. The people said that offers for the business were likely to fall towards the lower end or beneath the range, however, because BASE has been a well-run business, where there is less potential to create value. "I do not think that BASE will sell for as much as Orange Switzerland," one of the people said. "And however much they get for it will not move the needle materially in the battle with Carlos Slim." Blackstone, Cinven, Providence, Bain and KKR are among potential bidders, or could team up with Telenet to make an offer, other people said previously. France Telecom completed the sale of Orange Switzerland to Apax for 6.5 times 2011 EBITDA in February. KPN shareholders have until June 27 when America Movil's tender offer, priced at eight euros a share, for 27.7 percent of the company closes. The Dutch group is hoping that Telefonica will emerge as a white knight for its German business, E-Plus, which is valued at eight to 10 billion euros. Link this Share this Digg this Email Reprints

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