30th Jun 2005 13:07
Telefonica SA30 June 2005 Telefonica S.A., as provided in article 82 of the Spanish Securities Market Act(Ley del Mercado de Valores), hereby reports the following SIGNIFICANT EVENT Telefonica, S.A. has acquired 2.99% of the equity of the Chinesetelecommunications company, China Netcom Group Corporation (Hong Kong) Limited(CNC), at a price of 11.45 Hong Kong Dollars per share, which is the quotedshare price at June 27th 2005, and which, at current exchange rates, representsa total amount of 240 million euros. Telefonica intends to reach up to 5% stakein CNC and will have the right to appoint one representative to the Board ofDirectors. Upon acquisition of this stake Telefonica and CNC will start discussing and willseek a framework for strategic cooperation that could include, among others, theareas of joint purchasing of technology and infrastructure, the exchange andsharing of managerial, technical and operational expertise and resources;co-operation and sharing in areas of business development, network operations,customer acquisition and management, technology implementation, sales, marketingand branding; technology transfers in key areas of fixed line, internet, mobilevoice communications, wireless data services and other related services andjoint research and development by the Parties of key technologies,infrastructure, applications and solutions required for the provision ofadvanced telecommunications services. Madrid, June 30th, 2005. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
TDE.L