FRANKFURT (Reuters) - Deutsche Telekom considered making a takeover bid for Dutch rival KPN in 2014, with a view to expanding in neighbouring countries, sources familiar with the matter said.
The German telecoms group actively explored an offer for KPN late in the autumn but then put the project on hold and concentrated instead on the sale of the UK's biggest mobile network operator EE, jointly owned with Orange , to BT Group , three sources said.
"Once the EE deal is closed, Deutsche Telekom may revive the project," one of the sources said, adding that it is unclear if or when that may be the case. The EE deal is expected to close by the end of the year.
"They didn't go ahead with a formal bid," another person close to the matter said. The sources also said it was unclear whether the two companies held discussions on the subject.
For get any deal done Deutsche Telekom would first have to win over KPN's 24.8 percent shareholder America Movil , controlled by Mexican billionaire Carlos Slim.
"That should be easy. Slim is regarded as a seller," one of the sources said.
Slim failed to take over the Dutch group in 2013 after KPN's stakeholder foundation activated a poison pill defence.
Overcoming Dutch nationalism and persuading KPN's stakeholder foundation that a German owner is better than a Mexican is one of the challenges waiting for Deutsche Telekom if work on a KPN bid resumes, the sources said.
Deutsche Telekom and KPN declined to comment.