May 22, 2024 6:29 pm
Government aims to quickly reach 10% stake in Telefónica as share price hits May highs

During a recent press conference, Government spokesperson Pilar Alegra announced that the Executive is hoping the State Society of Industrial Participations (Sepi) will acquire 10% of Telefónica as quickly as possible. This comes after Sepi announced that it currently holds 3% of the telecommunications company’s shares. However, Alegra’s comments had an unexpected effect, as Telefónica’s shares began to rise following her statements.

By 4:30 p.m., the shares had reached 4.08 euros, a significant increase of 2.26%. The rush to complete the operation could result in a higher final bill for the government, as it will need to disburse an additional 1,600 million euros to reach the desired 10% ownership of the operator.

However, there is uncertainty about what this means for Telefónica’s future and the overall cost of the acquisition for the government. Sepi is not required to notify new purchases until it reaches 5% ownership of the company, which could add more time and costs to the acquisition process.

Stakeholders and investors are closely monitoring the situation and its potential impact on the telecommunications market. This unexpected turn of events has caused confusion and uncertainty about what lies ahead for both Telefónica and its shareholders.

In conclusion, while Pilar Alegra expressed hope that Sepi would acquire Telefónica’s shares quickly without negatively impacting its share price, her comments had an unintended effect by causing shares to rise significantly before reaching their intended target. As a result, there is now uncertainty about how much additional funding is needed to reach their goal and what this may mean for Telefónica’s future in terms of its ownership structure and overall financial stability.

Leave a Reply