KPN takes begging bowl to shareholders

NEWS Debt-ridden Dutch telco KPN looks set to ask its shareholders for around £3bn in Europe's second largest rights issue, according to the latest reports. KPN needs the money to help relieve its £14.2bn debt. The Dutch company also hopes to pull in £373m from the sale of its 21 per cent stake in Irish telco Eircom, which is likely to be taken over by a consortium led by Sir Anthony O'Reilly. KPN also hopes to get £392m for its Vodafone shares and another £49m from property sales. However, the firm will still be under pressure, with ongoing fears over its credit and bond ratings. Last week its shares dropped by a third to around £4. BT is in the process of asking for £5.9bn in Europe's largest rights issue, to help deal with its £30bn debt.