An independent foundation that can block a takeover of Dutch telecoms group KPN has expressed concern over the proposed €7.2 billion bid by Mexican billionaire Carlos Slim's America Movil.

America Movil (AMX) said last week it wanted to buy the 70 per cent of KPN it does not already own, in a challenge to its Spanish arch-rival Telefonica which last month offered to buy KPN's German business E-Plus, its crown jewel, for $11 billion. The statement from the foundation, which represents the interests of KPN owners, employees and customers, could be the first sign of opposition to Slim's bid.

KPN’s board, which has shown little enthusiasm for the billionaire’s involvement in the company since he built up an almost 30 per cent stake last year, has yet to say whether it supports America Movil’s offer.

Foundations, a common and independent element in many Dutch companies, can block hostile takeovers in the Netherlands. The foundation would typically exercise a call option, triggering a huge issue of preference shares from the target company and diluting the holding of an unwelcome or hostile bidder.

KPN’s shares fell 3.4 per cent to €2.26 yesterday, well below the €2.40 America Movil is offering, an indication investors think the offer may not succeed.

A move by the foundation to block America Movil's bid would likely "at least delay the company gaining full control of KPN," ratings agency Fitch said on Friday.

"If KPN asks the foundation for help, there's a big chance that this is going to the courts and then a judge could invalidate such a move," analyst Jos Versteeg at private bank Theodoor Gilissen said yesterday.

Carlos Garcia Moreno, America Movil's chief financial officer, this week told Dutch media that the Mexican group wants to "unlock value" at KPN and is not just interested in E-Plus. – (Reuters)