Telefonica to Sell its Czech Stake for $3.6 Billion

Everybody refuses to comment: representatives for Telefonica, Goldman Sachs and Societe Generale, as well as Telefonica Czech Republic. Yet sources closed to the deal told several news agencies that the giant telecom -which has operations in Spain, Germany, the U.K. and in Latin America- was preparing the sale of its stake in Cesky Telecom to raise cash for further industry consolidation.

The asset could be attractive for private-equity firms or a new entrant as existing carriers such as Deutsche Telekom and Vodafone Group are unlikely to win regulatory approval for a takeover, according to Andres Bolumburu, a Madrid-based analyst at Banco de Sabadell, to Bloomberg.

Other analysts pointed out that it makes sense for the firm to sell the asset and focus on the main European countries, then use the proceeds to further deleverage and go shopping again, may be in Brazil.

Telefonica Czech Republic rose 6.6 percent to 323 koruna in Prague after rising as high as 323.90 koruna. Telefonica climbed 0.4 percent on the Madrid exchange.

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