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Telefonica stock climbs as Spanish government to match Saudi stake

By Steve Goldstein

Shares in Telefonica rallied on Wednesday after the Spanish government said it would buy a stake of up to 10% in the country's telecommunications giant, which would match the investment made by a Saudi Arabian company.

Telefonica shares (ES:TEF) (TEF) rose 5% in early Madrid trade and have gained 11% this year.

Spain's state holding company, Sociedad Estatal de Participaciones Industriales, said it's buying the stake to provide Telefonica with greater shareholder stability. The move will match the intended purchase from Saudi's STC (SA:7010), which in September paid EUR2.1 billion ($2.3 billion) for a 9.9% stake.

The SEPI statement said it would try to minimize the impact on Telefonica's share price from the purchases.

-Steve Goldstein

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12-20-23 0404ET

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