Spain's state fund SEPI considers buying stake in Telefonica (updated)

Shenandoah Telecommunications

31/10/2023 07:41

(Adds details, comment from SEPI president, context)
       MADRID, Oct 31 (Reuters) - The Spanish sovereign fund
SEPI is evaluating acquiring a stake in the country's largest
telecom company Telefonica  TEF.MC , it said on Tuesday in a
filing to the stock market regulator.
    SEPI "is carrying out an exploratory internal analysis over
a potential acquisition of a stake in that company," its
president Belen Gualda Gonzalez said in the filing.    
    The analysis does not imply any decision on an acquisition,
she insisted.
    The possible acquisition by the Spanish state comes after
Saudi Arabia's telecom company STC  7010.SE  built a 9.9% stake
in Telefonica worth 2.1 billion euros ($2.23 billion) in
September, hence becoming Telefonica's largest shareholder.
        As Telefonica is considered a defence service provider
and a strategic company, the Spanish government has a say in
acquisitions and holdings between 5% and 10%.
  
        Spanish acting Economy Minister Nadia Calvino has said
the government would carry out a thorough evaluation before
approving STC's acquisition, while acting labour minister
Yolanda Diaz has openly called for blocking the deal.    
    ($1 = 0.9426 euros)

 (Reporting by Inti Landauro, editing by Pietro Lombardi and
Louise Heavens)
 ((Inti.Landauro@thomsonreuters.com;))