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KPN eyes Telefónica pact
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May 1, 2000: 3:58 a.m. ET
Shares jump after Dutch telecom admits to talks after shelving wireless IPO
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LONDON (CNNfn) - KPN Telecom shares rallied 4.2 percent early Monday after the Dutch telecom operator named Spain's Telefónica as one company with which it was holding discussions about a strategic partnership.
In Monday morning trading in Amsterdam shares of KPN rose  4.65, to 115.50. The Madrid stock exchange was shut because of a public holiday.
Word of talks with Telefónica came Saturday, a day after KPN said it would delay a planned initial public offering for its KPN Mobile subsidiary. KPN said the talks with a would-be partner, which accelerated Thursday, could materially affect its mobile business.
On Saturday, KPN did not say Telefónica was that partner, but did acknowledge that it was talking to the Spanish former telephone monopolist.
"KPN is in discussions with Telefónica, in as much as it is in discussions with other operators, to explore mutually beneficial opportunities," KPN said in a brief statement, adding it would not comment on such discussions.
Spanish newspaper El Mundo reported Saturday the two sides were in discussions about a strategic alliance that could lead to a merger that would be 60-percent owned by Telefónica.
The KPN spokesman declined to name other operators KPN was talking with or say how many there were, but did say he was unaware of talks KPN was reported to be having with Germany's Debitel.
Industry sources earlier said KPN was in discussions with the German mobile telecom services provider as each braced to bid for costly UMTS licences. Debitel, in which Switzerland's national operator Swisscom has a 74 percent stake, and E-Plus, majority owned by KPN, both operate in the German market.
Neither a spokesman for Debitel, nor a spokeswoman for Swisscom had any official comment. 
-- from staff and wire reports
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KPN Telecom
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