Telefónica’s Share Price Rises After Sepi Announces 10% Ownership Stake Acquisition

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

The State Society of Industrial Participations (Sepi) has announced that it plans to acquire 10% of Telefónica in a short period. This was announced by Pilar Alegra, the Government spokesperson, at a press conference on Tuesday. According to Alegra, the operation will be completed as quickly as possible, as long as it does not impact the share price.

However, Alegra’s statement had the opposite effect on Telefónica’s shares. By 4:30 p.m., the shares had reached 4.08 euros, representing a 2.26% 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 current ownership stake declared by Sepi is valued at over 700 million euros at market price. To reach the 10% ownership stake, an additional 1,600 million euros will need to be invested. However, Sepi is not required to disclose new purchases until it reaches a 5% stake in the capital. This development has significant financial implications for the government compared to the initial estimated cost of 2.1 billion euros.

It is crucial for all stakeholders to closely monitor this situation and its potential impact on both the telecommunications industry and the government’s budget

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