Telefónica Ups Stake in Chinese Telco

MADRID, September 5:
Telefónica has inked a deal that will give it a 5.5-percent stake in a Chinese
telecommunications giant that is being created by the upcoming merger between
China Netcom (CNC) and China Unicom (CU).

Telefónica has entered
into an agreement with AllianceBernstein for an additional stake of up to 5.74
percent of China Netcom Group. Telefónica will initially receive 2.71 percent
of of CNC, to be followed by up to 3.03 percent following the merger.
Telefónica's pro-forma shareholding in the enlarged entity resulting from the
merger will stand at approximately 5.5 percent. The total investment will be
between 760 million euros and 800 million euros.

—By Mansha Daswani