ADVERTISEMENT

News Summary: Telefonica buying German mobile unit

  • Article by: The Associated Press
  • July 23, 2013 - 2:30 PM

THE DEAL: Spain's Telefonica is buying German mobile unit E-Plus from Dutch telecommunications company Royal KPN NV for 5 billion euros ($6.58 billion) plus shares.

MOBILE SHAKE-UP: Germany's biggest mobile operator at present is Deutsche Telekom AG's T-Mobile, which serves some 36.6 million people; Vodafone is second with 33.9 million customers. The combination of E-Plus and Telefonica's O2 would have nearly 43 million.

TERMS: KPN would get 5 billion euros in cash and a 17.6 percent stake in Telefonica Deutschland. The transaction values E-Plus at 8.1 billion euros and is expected to close in the middle of next year.

© 2014 Star Tribune