Telefonica expects $2bn by selling shares in its German unitOctober 16, 2012 - 13:51 AMT PanARMENIAN.Net - Telefonica hopes to raise around 1.5 billion euros ($2 billion) by selling shares in its O2-branded German unit on the stock market, barely denting the telecom firm's 58 billion euro debt, Reuters reported. Europe's largest telecoms company by revenue has already said it could sell subsidiaries in Latin America as it tries to cut debt and hang on to its prized investment-grade rating, under pressure from the euro crisis in its Spanish home market. Telefonica plans to list up to 23.2 percent of its German subsidiary at between 5.25 euros and 6.50 euros per share, the company said on Tuesday, Oct 16, which at the mid-point values the stake at about 1.52 billion euros. Telefonica agreed to sell its Atento call center business to U.S. private equity firm Bain Capital for around 1 billion euros, including debt, last week and sold a stake in China Unicom earlier this year. Telefonica Deutschland's initial public offering on the German stock market values the whole company around 6.6 billion euros, calculated from the mid-point of the price range. After months of inactivity, the European IPO market has started to show signs of life. British insurer Direct Line and Germany's Talanx are among those whose shares have risen on stock market debuts this month. Telefonica Deutschland has attempted to woo investors with the prospect of a 500 million euro dividend next year, contrasting with its parent's decision to cancel its payout for 2012. Telefonica must raise between 7 billion euros and 8 billion euros a year through 2015 to cover debt repayments and risks rising refinancing costs if its credit ratings are cut. Telefonica said it will set the final price for the German listing on October 29, with the shares expected to begin trading on October 30. The company will offer 225 million shares and a greenshoe, or overallotment, option of 33.75 million shares. The offer period will last from October 17 to October 29. Top stories Yerevan will host the 2024 edition of the World Congress On Information Technology (WCIT). Rustam Badasyan said due to the lack of such regulation, the state budget is deprived of VAT revenues. Krisp’s smart noise suppression tech silences ambient sounds and isolates your voice for calls. Gurgen Khachatryan claimed that the "illegalities have been taking place in 2020." Partner news Most popular in the section | International cybercrime ringleaders arrested in Armenia, Ukraine Europol, Europe's crime agency, has arrested four ringleaders of several cybercrime networks that used botnets. Armenia skips CSTO Defense Ministers meeting A meeting of the Council of Defense Ministers of the Collective Security Treaty Organization countries began in Almaty. Armenian, Iranian foreigh policy chief talk over the phone The Foreign Minister of Armenia once again expressed condolences to his counterpart on the death of the President of Iran. Armenia, U.S. customs authorities to boost assistance with new deal The government has approved an agreement with the U.S. government on mutual assistance between the customs authorities. |