28th Apr 2006 16:43
Telefonica SA28 April 2006 Pursuant to the information notified by the Company in the Significant Eventregistered today, TELEFONICA S.A. as provided in Section 82 of the SpanishSecurities Market Law (Ley del Mercado de Valores), hereby submits the following NOTICE That the possible sale of TELEFONICA, S.A.'s holding in the share capital ofTELEFONICA PUBLICIDAD E INFORMACION, S.A. (hereinafter, "TPI"), within theframework of the public tender offer for all shares of TPI announced by YELLGROUP plc (hereinafter, "YELL"), would imply for TELEFONICA the recording ofcapital gains net of tax in its consolidated financial statements for 2006 of1,577 million euros. As indicated previously, the price of the offer presentedby YELL is 8.50 euros per share, giving a total price of 1,838 million euros for59.905% of the share capital of TPI currently owned by TELEFONICA, with thelatter receiving, in addition, 86.5 million euros in dividends prior to thesale. Furthermore, we hereby confirm that TPI will maintain the agreements withTelefonica de Espana, S.A. referred to in the prospectus for its publicoffering. Madrid, 28 April 2006. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
TDE.L