TEF Telefonica SA

   By Christopher Bjork 
 

MADRID--Telefónica SA (TEF) is "highly confident" that the planned sale of its U.K. unit O2 to Hutchison Whampoa Ltd. (0013.HK) will be successful, the Spanish company's chief financial officer said Wednesday.

"We are progressing nicely," Angel Vila said during a conference call, adding that Hutchinson is conducting due diligence without any surprises.

Hutchison and Telefónica began exclusive, non-binding talks in January for a deal in which the Hong Kong firm would pay Telefónica GBP10.25 billion ($15 billion) for O2, a leading U.K. cell phone operator.

Write to Christopher Bjork at Christopher.Bjork@wsj.com