Telefonica will not place more shares in ‘jewel in the crown’ O2 Germany

Spanish telecoms group Telefonica will not sell additional shares in its German unit after listing the planned 23% stake in the firm at the end of this month, Reuters cites Rachel Empey, finance chief of Telefonica Deutschland Holding, as saying. ‘There is no further strategy in terms of them selling down a minority stake,’ she said, adding: ‘Germany is the jewel in the crown. It is one of the key businesses. There is no intention to sell further shares.’ As reported earlier this week by CommsUpdate, Telefonica plans to list up to 23.17% in its German unit at between EUR5.25 and EUR6.50 (USD6.8-USD8.4) per share. A total of 225 million shares in Telefonica Deutschland Holding will be offered to the market, and the lead banks will have the option to buy up to 33.75 million additional shares. Telefonica, which is struggling to cut its debt burden amid falling revenue and profit in its domestic market, said that the offer period will commence on 17 October and is scheduled to end on 29 October, with trading to begin on the Frankfurt Stock Exchange the following day.