7th Jun 2005 18:23
Telefonica SA07 June 2005 ANTONIO J. ALONSO UREBA Director, General Secretary and Secretary of the Board of Directors TELEFONICA, S.A. "Telefonica, S.A.", as provided in article 82 of the Spanish Stock Market Law(Ley del Mercado de Valores) hereby reports the following: SIGNIFICANT EVENT The Board of Directors of Telefonica, S.A., at its meeting of May 31st, 2005,resolved to execute the resolution adopted by the company's shareholders intheir Annual General Meeting held this same date (May 31st, 2005) regarding acapital reduction by the cancellation of own shares corresponding to the "TIESProgram", the compensation system tied to the market price of Telefonica, S.A.share and targeted at the non- executive employees of the Telefonica Group. Therefore, 34,760,964 of the own shares of Telefonica, S.A. have been cancelled,reducing the company's share capital by the sum of 34,760,964 euros. This alsomeans rewording Article 5 of the By-laws, relative to share capital, which nowstands at 4,921,130,397 euros, made up of an equal number of ordinary shares,all of a single series and with a nominal value of one (1) euro per share,totally paid in. This share capital reduction is done with a charge to the Additional paid-incapital Reserve, and does not involve the return of contributions as the companyitself is the owner of the cancelled shares, and the purpose of the operation isto cancel own shares held as treasury stock. The public deed of this share capital reduction has been registered in the Madrid Mercantile Registry (Registro Mercantil) on June 7th, 2005. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
TDE.L