Telefonica to Purchase Additional 5.7% Stake in Netcom
Telefonica Press Release, 9/04/08
Spanish telecom operator Telefonica has announced it plans to purchase an additional 5.7% stake in China Netcom (NYSE: CN; 0906.HK). Initially, it will purchase up to a 2.7% stake in Netcom before Netcom's merger with China Unicom (NYSE: CHU; 0762.HK; 600050.SH) for approximately EUR 368 mln. Following the merger, it will purchase shares in the new company, representing 3% of Netcom stock.
If the first transaction is successful, Telefonica will own an approximate 9.9% stake in Netcom. If the second transaction is successful, then after the Netcom/Unicom merger, Telefonica will own approximately 5.5% of the newly merged company.
Editor's Note: Telefonica has previously stated that it plans to acquire a 10% stake in Unicom. For information please see "Telefonica Plans to Acquire 10% Stake in Unicom", MD 6/19/08 issue.
Keywords: 0762.HK 0906.HK 600050.SH China Netcom China Unicom CHU CN telecom Telefonica investment wireless
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