Telefonica Completes EUR3.05 Billion Rights Issue
April 17 2015 - 5:53AM
Dow Jones News
By Christopher Bjork
MADRID--Spain's Telefonica SA (TEF) said Friday it had completed
a 3.05 billion euros ($3.28 billion) rights issue to fund the
acquisition of Brazilian broadband operator GVT from France's
Vivendi SA (VIV.FR).
The Madrid-based phone operator sold just over 281 million
shares in a rights issue, it said in a regulatory filing. The
proceeds from the sale will be used to subscribe to a separate
capital increase by Telefonica's Brazilian unit, which is taking
over GVT in a EUR7.24 billion cash and stock deal.
Telefonica agreed last September to pay Vivendi EUR4.66 billion
in cash as well as shares in Telefonica Brasil (VIVT4.BR) and in
Telecom Italia SpA (TI) in exchange for GVT.
The acquisition of GVT bolsters Telefonica's position as the
leading telecommunications firm in Brazil, Latin America's biggest
economy, adding mostly broadband and cable customers.
Write to Christopher Bjork at christopher.bjork@wsj.com
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