Kpn Sales Fall; Barely Profitable In First Quarter

AMSTERDAM (AP) — Royal KPN NV, the Dutch telecommunications company partly owned by Mexican billionaire Carlos Slim, nearly slumped to a first-quarter loss following a slide in its mobile services business and a shrinking market for business customers in the Netherlands. KPN is in a state of flux at the moment as it tries to sell its German mobile telephone service arm E-Plus to Spain's Telefonica for approximately 8.6 billion euros in a deal that is receiving close scrutiny from European regulators. The Telefonica-E-Plus merger would create Germany's largest mobile operator by subscriber numbers, but would likely be less profitable than rivals Deutsche Telekom and Vodafone.

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