(Telecompaper) KPN has sold a 5 percent stake in Telefonica Deutschland to institutional investors for EUR 805 million. The 150 million shares were sold in an accelerated bookbuilding at EUR 5.37 each, a small discount to the EUR 5.47 closing price the day prior to the sale. KPN acquired a 20.5 percent stake in Telefonica's German subsidiary when it sold E-Plus to the company last year. With the latest share sale, KPN's stake in Telefonica Deutschland is reduced to 15.5 percent. KPn said it will use 70 percent of the proceeds from the sale to pay dividends and the remainder to stengthen its balance sheet. The Dutch operator agreed to not sell any further shares in Telefonica Deutschland for 90 days.