KPN May Sell BASE As Part Of Strategic Review

Royal KPN may sell its Belgian mobile and fixed-line business, BASE, if a strategic review finds that it would be in the company's best interests to do so. Netherlands-based KPN is accelerating a wide-ranging restructuring programme - which includes divesting non-core and underperforming businesses and up to 5,000 jobs - in a bid to improve profits and cashflow needed to stabilise its core domestic business. The announcement is the first indication that larger units could also be sacrificed as part of the turn-around. BMI believes that anti-trust conditions and the maturity of the Belgian market preclude a sale to a competitor and that the business would probably appeal most to private equity investors.

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