TEF to Complete TEM Merger on Jul 31

Spanish mobile group Telefónica Móviles will trade for the last time on the New York and Madrid stock exchanges on July 28 before completing its merger with parent company Telefónica, the company said in a statement.

The merged company will register with the Madrid trade registry and the union will be fully effective from July 31, the companies said in a note to the Madrid stocks and securities commission CNMV.

Both companies assigned Spanish bank BBVA to take charge of the swap operation.

Telefónica shareholders approved in June the company's plans to acquire the remaining 7.54% in the hands of TEM minority shareholders.

The swap offers Telefónica Móviles' minority shareholders four Telefónica shares for every five shares they hold in the mobile operator.

TEM stockholders will get 10.30 euros per share according to the current exchange rate.

TEM plans to grow its revenues by 7-10% in the next four years boosted by a positive market outlook for Latin America.

During 2005, revenues from Latin American operations grew 117%, to reach 7.7bn euros (US$9.16bn). The regional client base rose 33.8% to 70.5 million users over the same period.

BNAmericas.com"

Posted to the site on 26th July 2006