Forced by the Dutch government to divest from its cable TV subsidiary, KPN has sold Casema to France Telecom for Fl1.7 billion (#515 million). Under the agreement, Dutch bank Rabobank will have the right to acquire a five per cent stake in Casema at a later date.
Casema, which owns the Netherlands? largest cable network with more than one million subscribers, is already offering Internet access on its cable network, and has been preparing to offer voice telephony. The Dutch government required KPN to diminish its share in Casema to 20 per cent or less by next July, in order to promote competition.
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