Report: Telefonica prepares ETECSA bid

According to reports in Italian paper Il Sole 24 Ore citing Spanish financial sources, Spanish telecoms giant Telefonica is readying an offer for a 30% stake in Cuban incumbent telco ETECSA. Telecom Italia (TI) is said to be selling its shareholding in ETECSA as the Cuban company has not been as profitable as expected. According to TeleGeography’s CommsUpdate, TI held informal talks with Telefonica over the sale of the former’s shareholding in the telco in December 2008. At the time, Telefonica was said to be planning an offer of up to USD500 million for the shares, although TI was reportedly looking for nearer to USD780 million.