Spain's Telefonica de Espana has reportedly made an offer to acquire Dutch telecom KPN NV for $24 billion in a move to expand its reach in Europe.
The Wall Street Journal reported Sunday night that the two companies were putting together negotiating teams to work out the details; however, neither Telefonica nor KPN had any official comment.
Telefonica tried unsuccessfully to buy KPN in 2000; however, the Telefonica board backed out.
Should the deal go through this time, Telefonica would take over KPN's subscriber base in Belgium, Germany and the Netherlands, giving it enough of a geographical market to begin offering fixed-rate services to business travelers.
The Journal predicted that the deal would encourage other European telecoms to consider their own mergers or joint ventures.
Copyright 2005 by United Press International
Explore further: Bus sets speed record, runs on biomethane compressed natural gas