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Rising Shares in Telefónica: Government Announcement Could Change Ownership Stake and Budget Forecasts

Government aims to quickly reach 10% stake in Telefónica, causing stock to surge to May highs

Rising Shares in Telefónica: Government Announcement Could Change Ownership Stake and Budget Forecasts

Telefónica’s shares have risen by 2.26% after the Government spokesperson, Pilar Alegra, announced that the Executive expects the State Society of Industrial Participations (Sepi) to acquire 10% of Telefónica in a short period. This announcement came after Sepi declared that it currently holds 3% of the telecommunications operator’s shares.

Alegra stated that the operation will be completed as quickly as possible, but this statement had the opposite effect on Telefónica’s shares, causing them to rise for the first time since May 2023. By 4:30 p.m., the shares had reached 4.08 euros, representing a significant increase. The rush to complete the operation could potentially increase the final cost by tens of millions of euros, as Sepi will need to disburse an additional 1,600 million euros to reach the 10% ownership stake.

The initial estimated cost for acquiring a 10% stake in Telefónica was around 2.1 billion euros, but this has increased significantly due to Sepi’s declaration of a current ownership stake of just 3%. This development has financial implications for both Sepi and the government compared to their original estimates.

In light of these developments, it is crucial for all stakeholders to closely monitor the situation and its potential impact on both Telefónica and other players in the telecommunications industry, as well as on government budgets across Europe.

It is important to note that Alegra did not provide any details about how this acquisition would be made or what impact it would have on Telefónica’s operations or financial performance in future years.

Overall, this development highlights how even small changes in ownership stakes can have significant financial implications for both companies and governments alike, making it crucial for all parties involved to carefully consider their actions before making any major decisions or investments in large-scale projects like these.

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