Spain to buy up to 10% in Telefonica following Saudi entrance

MADRID: The Spanish government will acquire a stake of up to 10% in Telefonica through the state holding company SEPI in a counterbalance to the acquisition of a large stake in the telecoms giant by Saudi Arabia’s STC.

“The presence of a key public shareholder will reinforce the company’s ownership stability,” the Budget Ministry said in a statement on Tuesday.

SEPI said it would complete the acquisition of shares while minimising the impact on the share price. It would not give further details. A 10% stake has a current market value of around 2 billion euros ($2.20 billion).