Government can later intervene in the acquisition of KPN

The cabinet comes with a bill that allows the government an acquisition of a uk-based communications can be blocked if it the ‘national security implications’. In practice, only KPN with the law.

If another company will have a great importance wants in a Dutch telecommunications company that the government delivers, it will ask for permission from the Dutch government. The government can block inheritance if that ‘may cause harm to the telecom network’ and therefore, ‘national security in jeopardy’. That writes minister Henk Kamp of Economic Affairs to the Second Chamber.

The government thinks at a rate of 30 percent of the shares as a critical border. The government is currently working on a bill that probably next year in the spring, will be submitted. If the law enters into force, should the government also have power of veto over the composition of the Board of Directors and the supervisory Board.

Because the law only applies to companies that have infrastructure to deliver where the government and other telcos depend on, it is the law at this moment, this is only for KPN. Although Vodafone also services the government delivers, is that company in foreign hands. According to minister Kamp is the ‘national interest’ that the telecom network of KPN continues to function and that the extra is protected in a takeover. KPN supplies systems for emergency communications, the emergency services and the army.

The bill follows an attempt by the Mexican telecom giant America Movíl to KPN to take over. America Movíl abandoned the acquisition after a foundation with special shares and that the interests of KPN represents, the acquisition via a protection mechanism is temporarily blocked. According to Camp, had the acquisition may affect national security.

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