News / 

KPN shares fall after 4G deal prompts dividend cut

Save Story
Leer en español

Estimated read time: Less than a minute

This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

AMSTERDAM (AP) - Shares in Dutch telecommunications company Royal KPN NV have fallen sharply Monday over fears the company has once again paid too much in a mobile auction.

The company said after the close of trading on Friday it had paid (EURO)1.35 billion ($1.8 billion) to obtain frequencies for "4G," or fourth generation, high-speed mobile Internet services through 2030. KPN said it would slash dividends in 2012 and 2013 as a result. By mid-morning shares were down 13 percent at (EURO)4.01.

Back in 2000, the company spent more than (EURO)10 billion on 3G frequencies in the Netherlands, Germany and Britain. It wound up having to issue new shares with state support to avoid bankruptcy. Shares lost almost all their value, and the frequencies were later rented at lower prices.

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Most recent News stories


Get informative articles and interesting stories delivered to your inbox weekly. Subscribe to the Trending 5.
By subscribing, you acknowledge and agree to's Terms of Use and Privacy Policy.

KSL Weather Forecast