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Telefonica Hires Banks to Assist in Sale of Stake in O2 Germany
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Telefonica is moving ahead with its previously announced plans to sell a stake in its German subsidiary and has appointed four banks to advise it on the sale.
Citing people with knowledge of the process, Bloomberg News said that Bank of America, BNP Paribas, Citigroup and HSBC have been hired as bookrunners. The company was understood to have already hired UBS to assist in the sale.
Telefonica previously announced plans for the sale in order to help pay down its debt mountain. The company expects to raise between EUR1 to 1.5 billion from a 20% stake.
Telefonica's debt stood at EUR58 billion at the end of June. The company is coming under pressure to restore its debt ratings after Standard & Poor's cut the ratings in May to the lowest level since it started reporting on the company back in 1996.
Previous proposals for a merger of Telefonica O2 and E-Plus appeared to fall apart, even though UBS were handing separate transactions for both companies. It was claimed that the two companies came close to a deal, but it broke down over concerns that any deal not involving cash would hurt Telefonica's debt ratings.
On the web: Bloomberg News
Tags: [telefonica] [o2] [Germany]
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