Telefonica Delays Plans for Latin America Stock Market Floatation

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Spain's Telefonica has shelved plans for a stock market flotation of its Latin American businesses multiple news wires have announced.

The sale, which had been expected to raise upwards of EUR6 billion (US$8 billion) for the heavily indebted company has been postponed due to a lowering of the pressure on the company to pay down its debt.

Citing sources at the company, Bloomberg News also suggested that there was a possible lack of investor appetite for the floatation.

It had been previously reported 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 company has a debt of around EUR50 billion and saw its debt ratings cut last year as ratings agencies worried about the ability of the company to maintain its creditworthiness. Since then a sale of a stake in its German operations and improved performance in Latin America has lifted the financial pressure somewhat.

On the web: Bloomberg News

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