Shocking Turn of Events: Telefónica’s Shares Surge After Government Spokesperson Announcement

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

The Government spokesperson, Pilar Alegra, announced at a press conference on Tuesday that the Executive expects the State Society of Industrial Participations (Sepi) to acquire 10% of Telefónica in a short period. This statement came after Sepi notified that it currently holds 3% of the telecommunications operator’s shares. However, Alegra’s statement had the opposite effect, causing Telefónica’s shares to rise for the first time since May 2023.

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 initial estimated cost of acquiring this stake was only 2.1 billion euros, but with this development, it has increased significantly.

The value of Sepi’s current ownership stake is over 700 million euros at market price. To reach the 10% ownership stake, an additional investment of around 1,600 million euros is required. This additional funding has significant financial implications for both Sepi and the government compared to what was initially expected.

Given these developments, it is crucial for all stakeholders to closely monitor the situation and its potential impact on both Telefónica and other companies in the telecommunications industry as well as on government finances.

It is important to note that Sepi is not obligated to disclose new purchases until it reaches a 5% stake in capital ownership.

In conclusion, this unexpected turn of events has significant implications for both Telefónica and Sepi as well as for government finances. It highlights how important it is for all parties involved to be aware of any changes in capital ownership stakes and their financial consequences on both individual companies and industries as a whole.

The Government spokesperson, Pilar Alegra, announced at a press conference on Tuesday that the Executive expects the State Society of Industrial Participations (Sepi) to acquire 10% of Telefónica in a short period. This statement came after Sepi notified that it currently holds 3% of the telecommunications operator’s shares. However, Alegra’s statement had the opposite effect,…

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