KPN sells German assets for $500 million

Associated Press + More

AMSTERDAM (AP) — Royal KPN NV says it has agreed to sell its network of broadcasting towers for mobile telephony in Germany to American Tower Corp. of the U.S. for €393 million (around $500 million).

KPN, the Netherlands' largest telecommunications company, also is the third-largest mobile provider in Germany via its E-Plus arm. The towers are used by E-Plus and other smaller providers in Germany, and KPN intends to lease back capacity on the towers as needed.

KPN's earnings have slumped in recent quarters. It said in a statement Thursday that owning towers is not part of its business strategy, and it will use the proceeds to pay down debt.

American Tower Corp. is based in Boston and operates wireless broadcast towers around the world.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.