Mexico's telecommunications giant America Movil launched an eight-euros-a-share bid for a 28 percent stake in Dutch telecommunications firm KPN on Tuesday.

The price offered is 23.5% higher than KPN's closing price on Monday. A statement by America Movil, run by billionaire Carlos Slim, said a formal offer would be made by early June. The company already owns 4.8 percent of KPN's shares.

America Movil describes itself as the leading provider of wireless services in Latin America and claims to have 246 million subscribers.

KPN announced a 14 percent drop in 2011 in net profits and sales also dropped slightly. In a statement, the Dutch company said that America Movile's offer "substantially undervalues" KPN.

(jric/mw)

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