• Fri. May 24th, 2024

Government’s Telecom Acquisition Deal Suffers Unexpected Rise in Stock Prices After Official Comments.

BySamantha Nguyen

Mar 27, 2024
Government aims to quickly reach 10% stake in Telefónica as share price hits May highs

During a press conference, the Government spokesperson, Pilar Alegra, stated that the Executive hopes the State Society of Industrial Participations (Sepi) will acquire 10% of Telefónica as quickly as possible. However, her comments had the opposite effect as Telefónica’s shares began to rise following her statements. By 4:30 p.m., the shares had reached 4.08 euros, a significant increase of 2.26%.

Alegra emphasized the importance of completing the operation swiftly without negatively impacting the share price. However, this unexpected turn of events has caused uncertainty about the future of Telefónica’s shares and the overall cost of the acquisition for the government. Sepi is not required to notify new purchases until it reaches 5% ownership of the company, which has added to the uncertainty surrounding this acquisition deal.

Investors and stakeholders are closely monitoring this situation and its potential impact on the telecommunications market. The rush to complete this operation could result in a higher final bill for the government, as it will need to disburse an additional 1,600 million euros to reach the desired 10% ownership of Telefónica.

The Government hopes that Sepi will acquire 10% of Telefónica quickly without affecting its share price negatively. However, her statement led to an unexpected rise in Telefónica’s stock prices by 2.26%, reaching €4.08 per share by 4:30 p.m.

This sudden turnaround has created uncertainty about how much more money Sepi needs to spend to reach its goal of owning Telefónica completely and how long it may take for them to do so.

As a result, investors and stakeholders are keeping a close eye on developments in this deal and what they could mean for both companies involved and their respective markets.

To avoid any negative consequences from rising stock prices or delays in acquiring ownership stakes in Telefónica, Sepi must act quickly while ensuring they do not exceed their budget or negatively impact other stakeholders’ interests in telecommunications industry regulation policies.

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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