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 | Scholz hopes Armenia-Azerbaijan peace treaty will be signed this year German Chancellor Olaf Scholz hopes that a peace treaty between Armenia and Azerbaijan will be signed this year. Armenia, Russia discuss life extension of Metsamor nuclear plant Issues regarding the extension of life of the 2nd power unit of the Armenian Nuclear Power Plant were discussed in Yerevan. Armenians stage more campaigns against territorial concessions to Azerbaijan Protesters blocked more roads across Armenia on Friday, April 26 in continuing attempts to scuttle territorial concessions to Azerbaijan. Czech-Armenian military cooperation discussed in Yerevan A delegation led by the Director General for the Industrial Cooperation Division of the Ministry of Defence of the Czech Republic visited Armenia. |