SEPI announces it has reached 10% of Telefónica’s share capital

Telefonica dos

Renta 4 | The State Indutrial Ownership Corporation (SEPI) has announced that it already reached its 10% target of Telefónica’s share capital. The State would have invested €2,284.8 million to build this stake. We recall that SEPI has been awarded a seat on the board, to be occupied by Carlos Ocaña Orbis. According to press reports, SEPI could have applied for a second seat, although under current regulations its shareholding should reach around 13.4%.

Assessment: Expected news. We reiterate our view that the most favourable scenario is one in which the Board of Directors can take its decisions independently. In our view, SEPI’s market purchases were the main catalyst for the stock.

We revise our recommendation from OVERWEIGHT to HOLD as the upside potential is reduced to <10%. P.O. €4.6.

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