Infonet abandons sell-off - KPN miffed

NEWS KPN's plans to reduce its E20bn (£12bn) debts took a body blow yesterday after when US-based Infonet, in which it holds a stake, abandoned it sale plans. The Dutch telecoms group holds a 17.7 per cent stake in Infonet, and had hoped the sale would help contribute to its debt-reduction measures. But according to the Financial Times, Infonet chief executive Jose Collazo, admitted the company has failed to attract any worthwhile bidders, and has now decided to terminate the sale process. KPN will now be expected to explain to investors how it plans to make up the shortfall. The telco may still have a way out though as it is believed to still be in talks over a possible merger with state-owned Belgian operator, Belgacom.