According to the Belgian daily, L'Echo, the Belgian company BELGACOM and the Dutch operator KPN are close to a merger agreement. Points still to be resolved include the essential question of the allocation weighting between BELGACOM and KPN shareholders. The move will allow BELGACOM shareholders to envisage a more advantageous position, a majority stake in the capital of the new entity, equivalent to a 55/45 allocation or better still for the Belgian group. According to the daily, the agreement under discussion would be moving towards the creation of a holding company in the Netherlands which would become a 100% shareholder of an operational subsidiary with its head office in Brussels. See EI of 25 and 26 June.