Madrid: TelefónicaShares rose Wednesday morning after the Spanish government said Tuesday it would buy up to a 10% stake in the company to counterbalance a similar takeover by Saudi Arabia. STC ,
telefonica share They were up 5.5% at 3.763 euros in early trading, on track for their best day since Nov. 22, 2021, and topping the STOXX 600 index.
state holding company sepi It said on Tuesday it would buy the shares in a way that minimizes the impact on the market price, though it did not give a time frame. It will buy small amounts of shares over a two-month period, a source close to the matter told Reuters.
The market value of the 10% stake was about 2 billion euros ($2.19 billion) as of Tuesday evening.
The move is a response to STC’s announcement that it had taken a 9.9% stake in Telefónica in September.
Since Telefónica is considered a defense service provider, the Ministry of Defense has the right to acquire between 5% and 10% of the holdings, unless the buyer commits to request a seat on the board.
In October, SEPI said it was considering buying a stake in Telefónica, in what was seen as a government effort to balance potential STC influence in the company.
Economy Minister Nadia Calvino said on Tuesday that SEPI’s presence in Telefónica – it would become its largest shareholder – “will strengthen the ownership stability of the company”.
The government said its acquisition of Telefónica would be in line with its bigger neighbors such as Germany, France and Italy’s stake in their big telecom companies.
telefonica share They were up 5.5% at 3.763 euros in early trading, on track for their best day since Nov. 22, 2021, and topping the STOXX 600 index.
state holding company sepi It said on Tuesday it would buy the shares in a way that minimizes the impact on the market price, though it did not give a time frame. It will buy small amounts of shares over a two-month period, a source close to the matter told Reuters.
The market value of the 10% stake was about 2 billion euros ($2.19 billion) as of Tuesday evening.
The move is a response to STC’s announcement that it had taken a 9.9% stake in Telefónica in September.
Since Telefónica is considered a defense service provider, the Ministry of Defense has the right to acquire between 5% and 10% of the holdings, unless the buyer commits to request a seat on the board.
In October, SEPI said it was considering buying a stake in Telefónica, in what was seen as a government effort to balance potential STC influence in the company.
Economy Minister Nadia Calvino said on Tuesday that SEPI’s presence in Telefónica – it would become its largest shareholder – “will strengthen the ownership stability of the company”.
The government said its acquisition of Telefónica would be in line with its bigger neighbors such as Germany, France and Italy’s stake in their big telecom companies.
(TagstoTranslate)Telefonica Shares(T)Telefonica(T)STC(T)Stake Acquisition(T)SEP