MEXICO CITY (Reuters) - America Movil, Latin America's biggest phone company, said on Wednesday it would not proceed with a plan to boost its stake in KPN after the Dutch telecom's foundation blocked the Mexican company's bid.
America Movil's shares soared more than 6 percent on the news.
America Movil, controlled by billionaire Carlos Slim, owned nearly 30 percent of KPN until the independent foundation tasked with protecting the interests of KPN shareholders exercised an option to give itself about 50 percent of KPN's voting stock.
"The exercising of the call option by the foundation obstructs the completion of (the deal) as it is detrimental to KPN shareholders who want to participate in the deal," America Movil said in a filing.
Shares in America Movil rose more than 6 percent following the news, before easing to trade up 1.91 percent at 13.87 pesos.
"I think they ran out of patience," Andres Audiffred, an analyst with Ve Por Mas, said of America Movil.
America Movil shares have been under pressure this year as investors question the value of Slim's expensive European foray, which marks a big step from the company's familiar Latin American turf.
The company's shares are down 7 percent this year, despite an aggressive share buyback by the company.
Before the foundation acted to block the offer, America Movil had said it planned to proceed with its bid in September. America Movil had said it could help the Dutch telecom with important infrastructure investments.
(Reporting by Simon Gardner; Additional reporting by Noe Torres; Writing by Gabriel Stargardter; Editing by Leslie Adler)
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