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Telefonica Moving Closer to Stock Market Listing for Latin American Networks

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Spain's Telefonica has confirmed that it is looking at listing a portion of its Latin American networks in a move which could raise nearly USD5 billion for the indebted parent company.

Suggestions that the company was looking at following up its German subsidiary listing with something similar in Latin America first emerged last week, but have now been confirmed by the company's CEO.

Telefonica's CEO, Cesar Alierta told the Financial Times that the company could float a 10-15 percent stake in the Latin American business to "send the message that the sum-of-the-parts is much higher than the valuation of Telefonica."

It was reported last week that the company may fold the Latin American assets into a new Spanish holding company, and that it would then be listed on the New York stock market, with Telefonica retaining the majority stake.

The floatation is being worked on by the company, but it has not been given formal approval by the Telefonica board of directors, at the moment.

Alierta confirmed that there are no plans to sell a stake in the UK subsidiary.

On the web: Financial Times

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Tags: telefonica