STOCKS NEWS EUROPE-KPN shares rise above America Movil bid price

Shares of Dutch telecoms group KPN (Amsterdam: KPN.AS - news) spike as much as 6 percent on Tuesday, to a price above the 2.40 euros per share that Mexican group America Movil is currently bidding for the unit, although traders see no obvious catalyst.

"I can see no direct reason for the spike," an Amsterdam-based trader says.

KPN and America Movil are still in talks over the latter's 7.2 billion-euro ($9.6 billion) takeover offer although both have cautioned the outcome was unclear, with analysts suggesting the bid price was an issue.

Every 0.05 euro increase in the bid price would cost America Movil about 150 million euros more.

Volumes in KPN spiked at around 1120 GMT, the same time the share price shot up its highest level since early February.

"If this was genuine you'd look to see liquidity spike up and stay there, and although there has been an absolute volume move, liquidity has come right back to normal benign levels," Simon Maughan, analyst at Olivetree Financial Group, says.

"So suggestion would be that liquidity isn't enough for it to be real, despite the volume surge. Looks (BSE: LOOKS.BO - news) like a fat finger but such a big one that will take a while to unwind," Maughan says.

By 1102 GMT, KPN's shares pare gains, up 2.3 percent at 2.42 euros.

A KPN spokesman gave no comment on Tuesday. Reuters messaging rm://robert-jan.bartunek.thomsonreuters.com@reuters.net

Reuters messaging rm://david.brett.thomsonreuters.com@reuters.net