Telefonica Said to Weigh IPO for O2 as Soon as Year-End

Telefonica Said to Weigh IPO for O2 as Soon as Year-End

Foto: Fotolia

Telefonica is considering an initial public offering for its U.K. mobile-phone unit O2 as soon as the end of the year, people familiar with the matter said, as the Spanish telecommunications company looks for ways to reduce debt, according to Bloomberg.

Telefonica has resumed work on the listing and could seek to sell a minority stake in the fourth quarter, depending on market conditions, the people said, asking not to be identified because the deliberations are private. No final decision has been made and the Madrid-based parent company could postpone or cancel the plans or sell the holding to a bidder instead, they said. A spokeswoman for Telefonica declined to comment.

Last year, the U.K.’s decision to leave the European Union shook stock markets and forced Telefonica to shelve plans for the unit. It wasn’t the first time that politics intruded on Telefonica’s plans for O2 as earlier in the year EU regulators blocked its plans to sell the unit for as much as 10.25 billion pounds to CK Hutchison’s Three.

Telefonica’s goal for 2017 is to cut its approximately 49 billion euros ($53 billion) in debt by improving its cash generation. Earlier this year, the company agreed to sell as much as 40 percent of its infrastructure unit Telxius to KKR for 1.28 billion euros, after having scrapped an IPO last year.

More from category

IFA 2017: DT will continue to invest in fiber-optic network

IFA 2017: DT will continue to invest in fiber-optic network

3 Sep 2017 comment

At the opening of IFA 2017, Niek Jan van Damme, member of the Board of Management of Deutsche Telekom AG responsible for Germany, made a clear commitment to expanding the broadband network in Germany and explained the measures that have been taken so far. “I am very proud that we currently run the largest fiber-optic network in Germany, with approximately 455,000 kilometers of cables,” said van Damme. “Through our investment, we have succeeded in more than doubling the overall size of the network since 2007.” As a result of this expansion, Deutsche Telekom has gained more fiber-optic customers than any other European network operator, with approximately 8.2 million lines.

Sky Is Said to Plan High-Speed Broadband Service for Italy

Sky Is Said to Plan High-Speed Broadband Service for Italy

3 Aug 2017 comment

Sky plans to add a high-speed broadband service in Italy to its premium content packages, seeking to shake up a market dominated by Telecom Italia, according to Bloomberg, citing people familiar with the matter.

MTS trials live Licensed Assisted Access

MTS trials live Licensed Assisted Access

20 Jul 2017 comment

Together with MTS, the largest mobile network operator in Russia, and Qualcomm Technologies, a subsidiary of Qualcomm Incorporated, Ericsson has conducted the first successful live trial with a commercial small cell product of Rel-13 Licensed Assisted Access (LAA) technology in Russia.