Thursday, September 26, 2013

Carlos Slim, KPN and Protectionism

Carlos Slim (America Movil) is interested in buying KPN, the equivalent of Ma Bell in the Netherlands. Privatized in 1988, it can be bought like any other company, at least in theory. Now that a buyout offer has been made, the Dutch government is raising alarm bells that foreign ownership could constitute a national security threat.

The Dutch government, led by the pro-market Liberal Party, can't have it's cake and eat it too. If it's so concerned about national security, it should buy out the shareholders at a proper price and take the company off the market.

I'm not betting on it.