24th Oct 2007 12:54
Telefonica SA24 October 2007 Further to the reports registered on 30 April, 3, 7 and 8 May of this year,TELEFONICA, S.A., as provided in article 82 of the Spanish Stock Market Act(Ley del Mercado de Valores), hereby reports the following SIGNIFICANT EVENT According to information released yesterday, 23 October 2007, by the NationalTelecommunications Agency of Brazil (Anatel), the Governing Board of that agencyyesterday authorised, subject to certain conditions, the acquisition of anindirect stake in TELECOM ITALIA S.p.A. by TELEFONICA, S.A. As a result, TELEFONICA, S.A., ASSICURAZIONI GENERALI S.p.A., INTESA SANPAOLOS.p.A., MEDIOBANCA S.p.A. and SINTONIA S.A. (BENETTON) will in the coming days,after obtaining the relevant administrative authorisations, formally execute theacquisition of the whole of the capital stock of the Italian company OLIMPIAS.p.A., owner of shares representing 18% of the capital that confers votingrights of TELECOM ITALIA S.p.A. As already indicated in the aforesaid reports of Significant Event, theacquisition will be done through an Italian joint venture company, TELCO S.p.A.(in which TELEFONICA, S.A. holds a 42.3% equity stake), which, once the dealis completed, will hold approximately 23.6% of the TELECOM ITALIA S.p.A. votingcapital (18% indirectly through OLIMPIA S.p.A. and 5.6% contributed byASSICURAZIONI GENERALI S.p.A. and MEDIOBANCA S.p.A.). The acquisition of OLIMPIA S.p.A. will entail an outlay by TELEFONICA, S.A.of 2.314 billion euros. Also, in accordance with the resolutions adopted thispast 28 April, the acquisition of OLIMPIA S.p.A. will be partly financed with aloan of 1.1 billion euros granted to TELCO S.p.A. by INTESA SANPAOLO S.p.A. andMEDIOBANCA S.p.A. Furthermore, pursuant to the said resolutions and with the aimof financing repayment of the loan, the General Shareholders' Meeting of TELCOS.p.A. will approve a capital increase in an amount of up to 900 million euros,which TELEFONICA, S.A. may subscribe and pay for in proportion to its stakein the capital of that company, within a time frame of six months. Madrid, October 24th, 2007. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
TDE.L