Shares in Telefónica Surge After State Society of Industrial Participations Announces 10% Acquisition Stake

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 a 10% stake in Telefónica in the near future. This announcement came after Sepi revealed that it currently holds 3% of the telecommunications operator’s shares. However, the government spokesperson, Pilar Alegra, stated that the operation will be completed as quickly as possible without impacting the share price.

Unfortunately, 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. This 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 a 10% stake in Telefónica was around 2.1 billion euros. However, with an additional investment of 1,600 million euros needed to reach this goal, Sepi is now valued at over 700 million euros at market price.

This development has significant financial implications for both Sepi and the government compared to their initial projections. It is crucial for all stakeholders to closely monitor the situation and its potential impact on the telecommunications industry and the government’s budget.

Overall, this announcement highlights how important it is for companies and governments to carefully consider their actions and communicate effectively with stakeholders when making major decisions that could have significant financial implications.

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