Government’s unexpected acquisition stake in Telefónica causing telecommunications industry to soar

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

The State Society of Industrial Participations (Sepi) announced on Tuesday that it plans to acquire a 10% ownership stake in Telefónica, the telecommunications operator. This was revealed by Government spokesperson Pilar Alegra at a press conference. According to Alegra, the operation will be completed as quickly as possible without affecting the share price. However, her 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 cost of acquiring a 10% stake in Telefónica is estimated to be around 2 billion euros. To reach this goal, Sepi needs to invest an additional 1 billion euros on top of its current ownership stake of 3%. This development has significant financial implications for both Sepi and the government, which were initially estimated to spend only around 1 billion euros on acquiring a smaller stake in Telefónica.

The government has been closely monitoring the situation and has expressed its support for Sepi’s plans to increase its ownership stake in Telefónica. However, it is crucial for all stakeholders to closely monitor the situation and its potential impact on both the telecommunications industry and the government’s budget.

In light of these developments, it is important for all parties involved to work together towards finding a solution that benefits everyone involved while also taking into consideration the potential risks associated with such an operation.

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