Telefonica maintains fluid talks with Qatari government about possible 5%-10% stake investment
Telefonica chairman Cesar Aliert has been in fluid talks for months with the Government of Qatar about a possible alliance, El Confidencial reported citing sources close to the Spanish operator. The discussions are backed by Telefonica main shareholders the Spanish banks La Caixa (5.4%) and BBVA (6.9%), according to the report.
Under a potential deal, the sovereign fund Qatar Investment Authority (QIA) could take a 5% - 10% stake in Telefonica, the report's sources said. QIA would acquire 3% of the treasury stock Telefonica holds via derivatives and late the sovereign fund will subscibe to an issue of convertible bonds representing up to a 7% stake in the operator. At market prices, the investment will be worth around EUR 5.8bn, the Spanish-language report said.
Telefonica had previously been in talks with the Singapore sovereign fund Temasek, the report added.
El Confidencial