(MENAFN) Spain is moving forward with its planned acquisition of a 10 percent stake in the telecommunications giant Telefonica, aiming to complete the process as swiftly as possible while ensuring minimal impact on the company's share price. Spanish government spokeswoman Pilar Alegría emphasized that the acquisition will be carried out gradually to prevent any significant fluctuations in Telefonica's share price. The decision to enter Telefonica comes as part of a strategic move by the Spanish government to balance the acquisition of a stake in the company by the Saudi Telecom Company (STC), with state-run Sebi Holdings recently announcing the purchase of an initial three percent stake.
During a press conference following the weekly Cabinet meeting, Alegría highlighted the government's commitment to expedite the acquisition process without adversely affecting Telefonica's share price. She emphasized that ensuring stability for shareholders and safeguarding the company's strategic capabilities are paramount, particularly given Telefonica's role as a provider of defense services in Madrid.
Telefonica's shares experienced a notable uptick, rising approximately 1 percent during afternoon trading to reach 4.03 euros per share. This performance outpaced the broader market in Madrid, which recorded a modest increase of 0.37 percent. Year-to-date, Telefonica's stock has surged by 13 percent, reflecting positive investor sentiment and confidence in the company's prospects amidst ongoing developments.
The gradual acquisition of Telefonica shares by the Spanish government underscores its strategic objectives to enhance stability, protect strategic assets, and bolster shareholder confidence. By adopting a measured approach to the acquisition process, Spain aims to strike a balance between achieving its ownership goals and mitigating any potential market disruptions. As the acquisition progresses, stakeholders will closely monitor developments to assess its impact on Telefonica's performance and broader market dynamics.
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