By Suzanna Kerridge, 13 June 2000 16:08
NEWS Merger talks between KPN and Spain's Telefonica are back on after the Dutch government offered to fully privatise the Dutch telco by the end of next year. Discussions broke down last month after some of Telefonica's shareholders - banks BBV and Caixa - and the Spanish government opposed the deal, demanding the Dutch government relinquish its 43.5 per cent stake in KPN before the merger could be approved. Over the weekend, both telcos sent letters to their respective governments requesting clarification on their position on the $58bn merger. Spanish Prime Minister Jose Maria Aznar confirmed he received the letters but declined to comment on their contents. Juan Villalonga, chairman of Telefonica, said he was in discussions with the opposing shareholders to try and persuade them to reconsider.
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