Dutch Govt to give up KPN and TPG golden shares in long term
The Dutch government intends to give up its special veto rights in Royal KPN NV and TPG NV over the long term, but for the moment still sees holding on to the so-called golden shares as in the public interest, according to a letter from finance minister Hans Hoogervorst to parliament.
The minister was responding to the European Commission’s recent request for the Dutch government to come up within two months with measures to end its special influence at the two companies and give up the golden shares.
According to the EU, the preferred shares obstruct the free flow of capital and cross-border mergers in the EU.
The Dutch government decided last year already to give up its golden share in KPN in connection with gradually selling its around 35 pct stake in the telecoms group over the medium term. The stake is purely financial and legislation guarantees KPN continues to meet public interest obligations, the minister said.
Hoogervorst noted further that the golden share has never obstructed KPN’s ability to participate in cross-border mergers, with the government willing to give up its special rights when KPN held merger talks in recent years with Telefonica and Belgacom. Furthermore the government has agreed to strict guidelines with KPN on when it can exercise the special veto rights.
For TPG, there is still a public interest in holding on to the golden share, as legislation does not guarantee the quality of post delivery, the minister said.
While the government expects to give up both golden shares over the long term, currently it expects to hold on to the special rights until the public interests can be otherwise guaranteed, likely through new laws, the minister said.
Hoogervorst said he expects to defend the reasoning to the EU while at the same time avoiding a court battle with the commission. His definitive standpoint on the issue remains subject to further discussions with the economic affairs ministry.
The minister noted further that the government has already met the EU’s other demand that it give up its right to name supervisory board members at the two companies.
