Telecom Italia gets a helping hand from Telefonica S.A (NYSE:TEF)
Telefonica S.A (NYSE:TEF), the Spanish telecom company is all set to up its stake in Telecom Italia, its competitor said a person in the know. The debt burdened Italian group had been subjected to a great deal of speculation over the past 8 months and asset sales was supposed to be one way of dealing with the dire situation.
Detailed announcement pending
The details and the terms of this deal will be made public on Tuesday. Telco is Telecom Italia’s holding company and Telefonica S.A (NYSE:TEF) will be boosting its stake in the former. To start out with the stake will be taken up to 65% and this might move up to 70% in the future. Currently, Telefonica S.A (NYSE:TEF) is Telco’s largest stakeholder and holds 46% in the company. This amounts to 10% of the Telecom Italia shares and via this deal, its stake in the Italia group will rise to almost 16%. These additional shares will be acquired from other shareholders in Telco such as Intesa Sanpaolo, Generali and Mediobanca
In Monday’s trading session, Telefonica S.A (NYSE:TEF) stock rose by 0.26%. The opening price of the shares was $15.16 which climbed to an intraday high of $15.22 and dropped to a close of $15.17. Approximately 1.24 million shares were traded on Monday. An average volume of 1.07 million shares were traded over 30 days. The 52-week low of the shares is $12.31 and the 52-week low is $15.48. The company has a market capitalization of $68.31 billion.
About the company
The Spain-based Telefonica S.A (NYSE:TEF) is a company that is involved in the digital services and telecommunications sectors. It operates via three business segments: Telefonica Europa, Telefonica Latin America and Others. The company provides private and public telecommunication, entertainment and media services under brands such as Movistar, Telefonica, Vivo and O2 among others. It also provides Internet and data accesses, fixed telephony accesses, pay television and mobile accesses.