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KPN Nears DoCoMo Deal As Telefonica Talks Collapse
Posted: 06-May-2000 [Source: Reuters]

[NTT DoCoMo may be talking with KPN as an enry into the European market according to this report.]

London -- "Merger talks between KPN Telecom (KPN.AS) and Spain's Telefonica SA (TEF.MC) collapsed on Friday, but the Dutch carrier is poised to strike a rival deal with Japanese cellphone giant NTT DoCoMo (9437.T), sources said.

"``Expect something (with NTT DoCoMo) next week,'' said one industry source. He declined to be drawn on a deal that could bring Japan's largest cellphone group, which has been flirting with Europe for months, into the continent for the first time.

"NTT DoCoMo's name has been linked with KPN since the Dutch and Spanish companies announced a possible merger on Monday. Industry sources had said a three-way transaction -- or a Dutch/Japanese deal -- could be on the cards.

"KPN only confirmed that merger talks with Telefonica, which would have created Europe's fourth biggest telecoms company by market capitalization, had been abandoned amid Spanish government and shareholder objections.

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