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Telefónica plans German and LatAm IPOs
01 June 2012
Telefónica aims to raise funds by selling shares in German and Latin American operations to improve debt ratings
Telefónica is planning to sell its shares in German and Latin American phone units, according to widespread reports, which say the company’s board approved a proposal to float shares in O2 Germany, while looking for likely listings for its assets in Latin America.
The company aims to raise funds to reinstate debt ratings endangered by the slump in Spain. Last week, Standard & Poor’s reduced the company’s rating to the lowest level ever.
One report said that the Spanish company, which uses the Movistar brand in Latin America and Spain, and the O2 brand in Europe outside Spain, is considering establishing assets for individual Latin American countries instead of an IPO for the regional business.
The company will also accelerate the sale of non-core businesses, while reducing the cash portion of its 2012 dividend by 69%. GTB
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