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The logo of Spanish telecoms firm Telefonica is seen atop the company's building in Madrid, Spain, September 6, 2023. REUTERS/Violeta Santos Moura//File Photo Acquire Licensing RightsMADRID, Dec 4 (Reuters) - Telefonica told unions on Monday it was seeking to cut around 5,100 jobs in Spain by 2026 in an effort to reduce costs and adapt the company's size to the current market, a UGT union spokesperson said. The company based the decision on productivity, organization and technical reasons, the union spokesman said as Telefonica and the unions started negotiating the layoffs. In a statement Telefonica confirmed the labour "adjustment", but declined to say how many jobs it intended to axe. The company will negotiate the extent of the job cutting with the union, so that the actual cuts could be fewer than the 5,100 ones targeted by the company, UGT spokesperson Diego Gallart said.

Persons: Violeta Santos Moura, Diego Gallart, Inti Landauro, Matteo Allievi, Jakub Olesiuk, Andrei Khalip, Jan Harvey Organizations: Telefonica, REUTERS, Rights, Thomson Locations: Madrid, Spain

☆ Vodafone to sell Spanish arm to Zegona for $5.30 bln
▼ + stars: | 2023-10-31 | by ( ) www.reuters.com time to read: +1 min

LONDON, Oct 31 (Reuters) - Vodafone (VOD.L) will sell its struggling Spanish business to Zegona Communications (ZEG.L) for 5 billion euros ($5.30 billion), it said on Tuesday, in the British firm's second major transaction this year. Vodafone said it would receive at least 4.1 billion euros in cash. It will also provide 900 million euros in financing in the form of preference shares redeemable no later than six years after closing. Vodafone ranks third in Spanish telecoms after Telefonica and Orange. Zegona's Chairman and CEO Eamonn O'Hare said he was "very excited" about the opportunity to return to the Spanish telecomsmarket.

Persons: Margherita Della Valle, Britain's, Della Valle, Eamonn O'Hare, Yadarisa, Paul Sandle, Subhranshu Sahu, Kate Holton Organizations: Vodafone, Zegona Communications, Vodafone's, Telefonica, British, Zegona's, Thomson Locations: British, Spain, Orange, Spanish, Telecable, Bengaluru, London

☆ Spain's state fund considers taking Telefonica stake after STC move
▼ + stars: | 2023-10-31 | by ( ) www.reuters.com time to read: +2 min

The logo of Spanish Telecom company is displayed atop the company's building in Madrid, Spain, September 6, 2023. Acting Economy Minister Nadia Calvino has said Madrid will carry out a thorough evaluation before approving STC's stake, while acting labour minister Yolanda Diaz has called for the transaction to be blocked. Spain's SEPI said in a stock market filing on Tuesday that it was carrying out an "exploratory internal analysis over a potential acquisition" of a stake in Telefonica. STC declined to comment on any potential plans by SEPI. Caixabank, which owns 3.5% stake of Telefonica, said last week it would not raise its stake in response to STC's move, and would analyse with Telefonica any potential cooperation with the Saudi Arabian telecoms company.

Persons: Violeta Santos Moura, Spanish telco Caixabank, SEPI, Nadia Calvino, Yolanda Diaz, Spain's SEPI, Belen Gualda Gonzalez, Onur Genc, It's, Genc, Inti Landauro, Pietro Lombardi, Louise Heavens, Alexander Smith Organizations: Spanish Telecom, REUTERS, BBVA, Telefonica Bank, Telefonica MADRID, Telefonica, Saudi, STC, Saudi Arabia's, SEPI, Thomson Locations: Madrid, Spain, Spanish, Saudi Arabian

☆ STC reportedly drops plan to up stake in Spain's Telefonica to 9.9%
▼ + stars: | 2023-10-30 | by ( ) www.reuters.com time to read: +1 min

The logo of Spanish Telecom company is displayed atop the company's building in Madrid, Spain, September 6, 2023. Telefonica and STC declined to comment on the report. In September, Saudi Arabia's largest telecoms operator amassed a 9.9% stake worth 2.1 billion euros ($2.23 billion) in a move to become Telefonica's top shareholder, though it added it did not intend to acquire control or a majority stake. STC's holding consists of 4.9% of Telefonica's shares and financial instruments that give it another 5% in so-called economic exposure to the company. As Telefonica is considered a defence service provider, the Spanish defence ministry has a say in acquisitions and holdings between 5% and 10% unless the buyer commits not to request a seat on the board.

Persons: Violeta Santos Moura, David Latona, Belen Carreno, Jesus Aguado, Hadeel Al, Andrei Khalip Organizations: Spanish Telecom, REUTERS, Rights, STC, Telefonica, El Economista, Saudi, Inti Landauro, Thomson Locations: Madrid, Spain, Rights MADRID, Saudi, Spanish, Hadeel Al Sayegh, Riyadh

☆ Caixabank to look at how Telefonica and STC can cooperate
▼ + stars: | 2023-10-27 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Violeta Santos Moura/File Photo Acquire Licensing RightsMADRID, Oct 27 (Reuters) - Spain's Caixabank (CABK.MC), a major shareholder in Telefonica (TEF.MC), will analyse with the telecoms group any potential cooperation with STC after the Saudi telecoms firm's recent investment in Telefonica, the bank's CEO said on Friday. Caixabank has a 3.5% stake in Telefonica and a seat on its board. "Very particularly, we have to see what possibilities (Telefonica) has to cooperate with this great company, due to its size and relevance, which is STC," Gortazar said, adding Caixabank would seek to express its views on the matter at board-level discussions. As Telefonica is considered a defence service provider, Spain's Defence Ministry has a say in acquisitions and holdings between 5% and 10%, unless the buyer commits not to request a seat on the board. STC, which has yet to request authorisation from the Spanish government to exercise voting rights corresponding to the financial instruments, has said it does not intend to acquire control or a majority stake in Telefonica.

Persons: Violeta Santos Moura, Gonzalo Gortazar, Caixabank, Gortazar, Jesús, Andrei Khalip, Mark Potter Organizations: Spanish Telecom, REUTERS, Rights, Telefonica, Saudi, STC Group, Spain's Defence Ministry, STC, Thomson Locations: Madrid, Spain, Rights MADRID, Saudi

☆ Telefonica may seek damages in event of Huawei curbs in Germany
▼ + stars: | 2023-09-20 | by ( ) www.reuters.com time to read: +1 min

The logo of Spanish Telecom company Telefonica is seen during GSMA's 2022 Mobile World Congress (MWC) in Barcelona, Spain February 28, 2022. REUTERS/Nacho Doce/File Photo Acquire Licensing RightsFRANKFURT, Sept 20 (Reuters) - Telefonica Deutschland (O2Dn.DE) on Wednesday said it would consider seeking damages from the German government as well as legal action if Berlin imposed restrictions on using China's Huawei (HWT.UL) that meant retrospective changes to its network. In a statement to Reuters, Telefonica Deutschland said it was in regular contact with the German authorities and stressed the need for consistency in planning for the security of communications infrastructure. Earlier a government official said Germany's interior ministry plans to force telecoms operators to slash the use of equipment from Huawei and ZTE in their 5G networks after a review highlighted an over-reliance on these Chinese suppliers. Reporting by Hakan Ersen; writing by Matthias Williams; editing by Friederike HeineOur Standards: The Thomson Reuters Trust Principles.

Persons: Nacho, Hakan Ersen, Matthias Williams, Friederike Heine Our Organizations: Spanish Telecom, Telefonica, Congress, REUTERS, Rights, Telefonica Deutschland, Huawei, Reuters, ZTE, Thomson Locations: Barcelona, Spain, Berlin

As Telefonica's rivals slashed prices to attract internet users, the Spanish company also borrowed to invest in new mobile and internet networks. But the secrecy with which STC (7010.SE) built its stake did catch some observers off guard, the person said. Telefonica said it was informed Tuesday about STC'S investment, after the companies had become more acquainted in recent months. STC sought to keep the stake under wraps until it could buy at least 9.9% of Telefonica, the person said. Middle Eastern investors have been taking stakes in Spanish companies for some time.

Persons: Violeta Santos Moura, Jose Maria Alvarez, Pallete, Alvarez, Prince Mohammed bin Salman's, UGT, Morgan Stanley, Linklaters, Motaz Al Angari, Al Angari, pare, EFG Hermes, Nadia Calvino, Inti Landauro, Tomas Cobos, Amy, Jo Crowley, Pablo Mayo, John O'Donnell, Anousha, Elisa Martinuzzi, David Gregorio, Ros Russell Organizations: Spanish Telecom, REUTERS, Rights, Telefonica, STC Group, STC, Saudi Arabia's Public Investment Fund, Foresight, Saudi, United Arab, Vodafone, Thomson Locations: Madrid, Spain, Rights DUBAI, MADRID, Silicon Valley, Saudi, Riyadh, Telefonica, Saudi Arabia, Spanish, Latin America, theocracies, United Arab Emirates, Iberdrola, Davos, Gulf, London

He learned Saudi Arabia's largest telecoms operator, STC Group, aimed to be Telefonica's biggest shareholder, with an interest of 9.9%. The move is a vote of confidence in Telefonica, burdened by billions of dollars in debt while STC gains expertise to modernize Saudi telecoms infrastructure. As Telefonica's rivals slashed prices to attract internet users, the Spanish company also borrowed to invest in new mobile and internet networks. STC sought to keep the stake under wraps until it could buy at least 9.9% of Telefonica, the person said. Middle Eastern investors have been taking stakes in Spanish companies for some time.

Persons: Violeta Santos Moura, Jose Maria Alvarez, Pallete, Alvarez, Prince Mohammed bin Salman's, UGT, Morgan Stanley, Linklaters, Motaz Al Angari, Al Angari, pare, EFG Hermes, Inti Landauro, Tomas Cobos, Amy, Jo Crowley, Pablo Mayo, John O'Donnell, Anousha, Elisa Martinuzzi, David Gregorio Our Organizations: Spanish Telecom, REUTERS, Rights, Telefonica, STC Group, STC, Saudi Arabia's Public Investment Fund, Foresight, Saudi, United Arab, Vodafone, Thomson Locations: Madrid, Spain, Rights DUBAI, MADRID, Silicon Valley, Saudi, Riyadh, Telefonica, Saudi Arabia, Spanish, Latin America, theocracies, United Arab Emirates, Iberdrola, Davos, Gulf, London

☆ European stocks extend losses as economic slowdown jitters weigh
▼ + stars: | 2023-09-06 | by ( ) www.reuters.com time to read: +1 min

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, September 4, 2023. REUTERS/Staff/File Photo Acquire Licensing RightsSept 6 (Reuters) - European stocks extended losses for a sixth consecutive session on Wednesday as worries about global economic slowdown and higher crude prices spurring inflationary pressures weighed on risk sentiment. The pan-European STOXX 600 index (.STOXX) slipped 0.5% by 0713 GMT, hovering near a one-week low. While oil prices pulled back slightly, government bond yields continued to rise, with the German 10-year yield jumping to two-week highs. Further denting the mood, German industrial orders fell more than expected in July, the federal statistics office said.

Persons: Sruthi Shankar, Sherry Jacob, Phillips Organizations: REUTERS, Staff, Telefonica, Saudi Arabia's STC, Spanish, Thomson Locations: Frankfurt, Germany, Saudi Arabia, Russia, Bengaluru

☆ Saudi Arabia's STC Group acquires 9.9% stake in Telefonica
▼ + stars: | 2023-09-05 | by ( ) www.reuters.com time to read: +1 min

The logo of Spanish Telecom company Telefonica is seen next to a traffic ligth at its headquarters in Madrid, Spain, May 12, 2021. REUTERS/Sergio Perez/File Photo Acquire Licensing RightsLONDON, Sept 5 (Reuters) - Saudi Arabia's STC Group has amassed a 9.9% stake in Spanish telecoms giant Telefonica (TEF.MC) for 2.1 billion euros ($2.25 billion) in shares and financial instruments, STC said on Tuesday. STC does not intend to acquire majority control of Telefonica, it added in a statement. STC is Saudi Arabia's largest telecoms operator and also owns subsidies and has stakes in companies operating in Kuwait and Bahrain. It is 64% owned by Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), the main engine of Crown Prince Mohammed bin Salman's Vision 2030 to wean the economy off its dependence on oil.

Persons: Sergio Perez, Prince Mohammed bin Salman's, Pablo Mayo Cerqueiro, Jonathan Oatis, Richard Chang Organizations: Spanish Telecom, Telefonica, REUTERS, Saudi Arabia's, Saudi, Public Investment Fund, Thomson Locations: Madrid, Spain, Kuwait, Bahrain, Saudi, Europe

Data centres are facilities that host IT systems and applications. In April, Brookfield Infrastructure acquired French data centre group Data4 in a deal said to have valued the company at close to 3.5 billion euros, including debt. Asterion formed Nabiax in 2019 through the acquisition of 11 data centres from Telefonica across Spain and Latin America. In March, the group sold its Latin American operations to British infrastructure fund Actis, with a view to focusing on its home market. A sale of Nabiax could help Telefonica pay down debt, a focus for the Spanish telecoms giant.

Persons: Nabiax, Pablo Mayo Cerqueiro, Amy, Jo Crowley, Andres Gonzalez, Jesus Aguado, John O'Donnell, Louise Heavens Organizations: Reuters, Infrastructure, Asterion Industrial Partners, BBVA, Citigroup, Telefonica, Brookfield Infrastructure, Thomson Locations: Madrid, Telefonica, Spain, Latin America, British, London

☆ Telefonica sells controlling stake in Peruvian fibre optic network to KKR
▼ + stars: | 2023-07-07 | by ( ) www.reuters.com time to read: +1 min

MADRID, July 7 (Reuters) - Telefonica (TEF.MC) has sold a 54% stake in its fibre optic network in Peru to U.S. private equity fund KKR (KKR.N) and 10% to Entel's (ENTEL.SN) local business, the Spanish telecoms group said on Friday, adding that it will retain the remaining 36%. In many markets, the company has separated the infrastructure into different units to maximise the value of its disposed assets. The Spanish company did not disclose the value of the transaction but said the deal would cut its debt by 200 million euros ($217.8 million). The transaction valued 100% of the unit at about 550 million euros, including debt, according to a banking source close to the deal. The new company, Pangeaco, will combine the existing fibre optic network in Peru from Telefonica and Entel, KKR firm said in a separate statement.

Persons: Inti Landauro, Jacqueline Wong, David Goodman Organizations: Telefonica, KKR, Entel, Santander, Thomson Locations: MADRID, Peru, U.S, Spanish

STOCKHOLM, June 30 (Reuters) - The proposed EU Artificial Intelligence legislation would jeopardise Europe's competitiveness and technological sovereignty, according to an open letter signed by more than 160 executives at companies ranging from Renault (RENA.PA) to Meta (META.O). EU lawmakers agreed to a set of draft rules this month where systems like ChatGPT would have to disclose AI-generated content, help distinguish so-called deep-fake images from real ones and ensure safeguards against illegal content. Since ChatGPT became popular, several open letters have been issued calling for regulation of AI and raising the "risk of extinction from AI." The third, Yann LeCun, who works at Meta, signed Friday's letter challenging the EU regulations. The letter warned that under the proposed EU rules technologies like generative AI would become heavily regulated and companies developing such systems would face high compliance costs and disproportionate liability risks.

Persons: ChatGPT, Elon Musk, Sam Altman, Geoffrey Hinton, Yoshua, Yann LeCun, OpenAI's Altman, Supantha Mukherjee, Jamie Freed Organizations: EU Artificial Intelligence, Renault, EU, Meta, Spanish, Thomson Locations: STOCKHOLM, French, Europe, Stockholm

☆ Orange, Masmovil's Spanish tie-up faces EU antitrust probe
▼ + stars: | 2023-04-03 | by ( Foo Yun Chee | ) www.reuters.com time to read: +2 min

BRUSSELS, April 3 (Reuters) - European Union antitrust regulators on Monday warned that Orange (ORAN.PA) and MasMovil's 18.6-billion-euro ($20 billion) Spanish telecoms merger could reduce competition in Spain as they opened a full-scale investigation into the deal. Orange, the second largest telecoms provider in Spain, and fourth-ranked MasMovil announced the deal in July 2022, triggering expectations of more mergers in the sector. This could lead to higher prices and lower quality of telecom services for customers," the Commission said in a statement. "As result of the transaction, Orange and MasMovil would have the ability and incentive to restrict access of virtual operators to wholesale mobile network and wholesale fixed network access services," it said. Orange said it would take the time and the opportunity to demonstrate the benefits of the deal to the Commission.

☆ Goldman Sachs' top stock picks in Europe include three with over 100% upside
▼ + stars: | 2023-03-31 | by ( Zavier Ong | ) www.cnbc.com time to read: +2 min

"The macro backdrop remains uncertain … That said, we see scope for alpha opportunities with returns dispersion across sectors," Goldman's analysts, led by John Sawtell, wrote in a Mar. Out-of-consensus buys The bank identified a raft of out-of-consensus stock picks, where each stock is rated "buy" by fewer than 50% of analysts covering them. Goldman gives Deutsche Bank potential upside of 114%. UBS , which recently swooped in with a rescue deal for embattled Credit Suisse, is also on Goldman's screen, with potential upside of 104%. The bank gave British telecommunications firm BT Group potential upside of 101%.

☆ EU antitrust regulators set March 20 deadline for Orange's MasMovil bid
▼ + stars: | 2023-02-14 | by ( ) www.reuters.com time to read: 1 min

BRUSSELS, Feb 14 (Reuters) - EU antitrust regulators will decide by March 20 whether to clear French telecoms provider Orange's (ORAN.PA) $19 billion bid for Spanish telecoms provider MasMovil, a European Commission filing showed on Tuesday. Orange sought EU approval the previous day. The EU competition watchdog can clear the deal with or without remedies after its preliminary review ends, or it can open a four-month investigation if it has serious concerns. The deal marks a tie-up between Spain's second and fourth largest telecoms operators, which could trigger more stringent scrutiny by the Commission. Reporting by Foo Yun Chee Editing by Bill BerkrotOur Standards: The Thomson Reuters Trust Principles.

☆ European companies are tapping bond markets again as investors return
▼ + stars: | 2022-11-22 | by ( Chiara Elisei | ) www.reuters.com time to read: +4 min

German housing giant Vonovia (VNAn.DE) last week raised 1.5 billion euros ($1.54 billion) amid strong investor demand in primary markets, a bright spark for a beleaguered property sector. Also noteworthy was a 750 million euro hybrid bond sale from Spanish telecoms firm Telefonica (TEF.MC), the first offering of its kind in Europe in two months. There were no hybrid bond deals in June and July, and only one transaction in September before Telefonica's offering. New hybrid bond sales total just over 10 billion euros so far this year, compared with 30 billion euros for the whole of 2021. In the broader market, investment grade corporate issuers have raised 258 billion euros so far this year compared with 322 billion euros in 2021, according to Refinitiv data.

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