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4-Traders Homepage  >  Equities  >  Euronext Amsterdam  >  Royal KPN    KPN   NL0000009082

ROYAL KPN (KPN)
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Tele2 Wins Dutch Government Contract For Fixed Telephony

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04/18/2012 | 05:20pm CEST

Tele2 AB (TEL2-B.SK) said Wednesday it won a contract to provide fixed-line services to the Dutch state, marking an end to a months-long battle between the Swedish company and Dutch incumbent Royal KPN NV (>> KPN KON).

The contract is only worth an estimated total volume of EUR120 million with a minimum period of 3.5 years, but it is considered prestigious.

Tele2 will supply fixed telephony to more than 100 governmental organizations, including the seven government ministries, a large number of municipalities, district water boards, the University of Amsterdam and the Dutch High Court.

"We are very pleased with the news of the contract. The government is an important client for us. We are proud of the fact that we can provide fixed telephony to them in the coming years," Tele2's Dutch head Guenther Vogelpoel said.

In February, a Dutch commercial court ruled that KPN must retract a bid for the contract granted by the Dutch government, after a similar ruling by Dutch telecom regulator Opta.

The ruling was confirmed by a higher court this month.

Both companies had bid for the contract, but because KPN was late in informing its wholesale customers about a discount, Tele2 was unable to make a bid based on the lower KPN prices, the regulator ruled.

A KPN spokeswoman said the company has noticed the decision to award the contract.

-By Archibald Preuschat and Sven Grundberg, Dow Jones Newswires; +31 20 5715 218; [email protected]

Stocks mentioned in the article : KPN KON
Stocks mentioned in the article
ChangeLast1st jan.
ROYAL KPN 1.41% 2.453 Delayed Quote.-16.82%
TELE2 AB --End-of-day quote.
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Financials (€)
Sales 2018 6 203 M
EBIT 2018 882 M
Net income 2018 503 M
Debt 2018 6 262 M
Yield 2018 5,54%
P/E ratio 2018 20,43
P/E ratio 2019 17,85
EV / Sales 2018 2,65x
EV / Sales 2019 2,63x
Capitalization 10 167 M
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Mean consensus OUTPERFORM
Number of Analysts 27
Average target price 3,19 €
Spread / Average Target 32%
EPS Revisions
Managers
NameTitle
Eelco Blok Chairman-Management Board & CEO
Duco W. Sickinghe Chairman-Supervisory Board
Joost F. E. Farwerck Chief Operations Officer
Jan Kees de Jager Chief Financial Officer
Derk J. Haank Vice Chairman-Supervisory Board
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