KPN shares fall after 4G deal prompts dividend cut

December 17th, 2012 in Technology / Business

Shares in Dutch telecommunications company Royal KPN NV are falling sharply Monday over fears the company has once again paid too much in a 4G mobile auction.

The company said after the close of trading on Friday it had paid €1.35 billion ($1.8 billion) to obtain frequencies for fourth generation high-speed mobile Internet services through 2030. KPN said it would slash in 2012 and 2013 as a result. By mid-morning shares were down 13 percent at €4.01.

Back in 2000, the company spent more than €10 billion on 3G frequencies in the Netherlands, Germany and Britain. It wound up having to issue new shares with state support to avoid . Shares lost almost all their value, and the frequencies were later rented at lower prices.

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"KPN shares fall after 4G deal prompts dividend cut." December 17th, 2012. http://phys.org/news/2012-12-kpn-fall-4g-prompts-dividend.html