• Sat. May 25th, 2024

Telefónica’s Shares Soar After Government Announcement to Acquire 10% Stake: What Lies Ahead for the Telecommunications Giant?

BySamantha Nguyen

Mar 27, 2024
Government aims to quickly reach 10% stake in Telefónica as share price hits May highs

During a press conference, Pilar Alegra, the Government spokesperson, announced that the Executive hopes to acquire 10% of Telefónica as quickly as possible. This news comes after Sepi, the State Society of Industrial Participations, revealed that it currently owns 3% of the telecommunications company’s shares.

Alegra emphasized the importance of completing the operation swiftly without negatively impacting the share price. However, her comments had an unexpected effect as Telefónica’s shares began to rise following her statements. By 4:30 p.m., the shares had reached 4.08 euros, a significant increase of 2.26%.

The rush to complete the operation could result in a higher final bill for the government, as it will need to disburse an additional 1,600 million euros to reach the desired 10% ownership of the operator. Sepi is not required to notify new purchases until it reaches 5% ownership of the company, which has caused uncertainty about the future of Telefónica’s shares and the overall cost of the acquisition for the government.

Stakeholders and investors are closely monitoring the situation and its potential impact on the telecommunications market. The unexpected turn of events has caused uncertainty about what lies ahead for Telefónica and its shareholders.

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

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