Telefonica to merge with Moviles
16 March 2006
Spanish incumbent Telefonica has confirmed its intention to bid for the remaining 7.5 per cent stake it does not already own in mobile unit, Telefonica Moviles.
"It is the intention of Telefonica to present to the board of Telefonica Moviles a proposal to merge the two companies," a Telefonica spokeswoman told telecoms.com today.
The carrier will offer minority stakeholders four shares in Telefonica for every five shares in Telefonica Moviles, the spokeswoman said.
Trading in both Telefonica and Moviles shares has been suspended pending a formal announcement, but shares in Moviles rose almost 10 per cent this morning on the back of initial rumours.
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