KPN has agreed to sell its German mobile operator E-Plus to Telefónica Deutschland GmbH for €8.1 billion (US$10.7 billion) in cash and stock. KPN is set to receive €5 billion ($6.6 billion) in cash and a 17.6 percent stake in Telefónica Deutschland, valued by the terms of the deal at €3.1 billion ($4.1 billion). Should the deal be approved by German and European Commission regulators -- and there's no guarantee that it will -- the combined business would become Germany's largest mobile service provider by subscribers, with about 43 million customers (first quarter 2013 numbers) and a market share of about 38 percent. Current market leader T-Mobile has about 37 million mobile customers while Vodafone Germany has more than 32 million subscribers. The addition of E-Plus would boost Telefónica Deutschland's annual revenues to around €8.6 billion ($11.4 billion). The two operators believe that the combination of E-Plus and Telefónica Deutschland's mobile operations (also known as O2 Deutschland) will create cost savings of up to €5.5 billion ($7.25 billion).
News of the proposed M&A activity came as KPN announced less than encouraging second-quarter results. The Dutch incumbent reported revenues of €2.94 billion ($3.9 billion), down by 8.1 percent year-on-year, and a net profit of €108 million ($143 million), down 68 percent. "Conditions remained challenging in the first half of 2013," noted CEO Eelco Blok. He may get a call from Carlos Slim later. (See Euronews: Slim Takes a Breather.)
Etisalat has entered into exclusive talks to buy Vivendi's 53 percent stake in Maroc Telecom for €4.2 billion ($5.54 billion). Etisalat has until September 25 to seal a deal. For more details, see this Reuters story.
Mobile messaging infrastructure specialist Acision has named former Alcatel-Lucent executive Adolfo Hernandez as its new CEO, starting August 19. Hernandez was at AlcaLu for more than four years, first as head of EMEA (Europe, Middle East and Africa) and then as head of the Global Software, Services and Solutions line of business. He takes over at Acision from Jorgen Nilsson, who recently quit. The appointment comes as Acision adapts to a mobile messaging world that has to embrace over-the-top applications and cloud service delivery architectures. (See Acision Names New CEO and Acision Unveils Fusion Messaging Platform.)