Telefónica Rules out Further Acquisitions After Telecom

Spain's Telefónica has ruled out further acquisitions in Colombia after its purchase of 50% plus one share of Colombia Telecomunicaciones (Telecom), Spanish daily Cinco Días reported.

"We don't have any new acquisitions planned in Colombia. Now what we want to do is develop what we [already] have," Telefónica president César Alierta was quoted as saying.

However, through Telecom, Telefónica has a presence equivalent to 2.6 million subscribers, meaning it has a lot of ground to cover to catch up with arch rival América Móvil (NYSE: AMX), which has 13.8 million clients and a 62% market share through its mobile unit Comcel.

It therefore seems logical that Telefónica might attempt to increase its subscriber base by buying mobile operator Ola, which will be accepting potential bidders through the end of April.

BNamericas.com"

Posted to the site on 12th April 2006