Telefonica Seems to Be in Limbo Pending M&A Deals, BofA Says — Market Talk

Dow Jones Newswires

Telefonica's future performance pivots on acquisitions, Bank of America analysts write in a note, cutting their rating on the Spanish telecom stock to underperform from neutral. M&A deals could bolster Telefonica's operations and redress some governance issues, and would likely be funded through a share issue, BofA says. But so far, no deals have emerged, the analysts note. In the meantime, the company remains in a state of limbo, BofA says. The bank cuts its target price on the stock to 3.40 euros from 3.80 euros previously. Shares are broadly flat at 3.63 euros. (joshua.kirby@wsj.com; @joshualeokirby))

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Add to Favorites

América Móvil, Entel Terminate Agreement Related To Joint Offer For Telefónica Chilean Operation

dpa-AFX

Telefonica

-2.58%

MADRID (dpa-AFX) - América Móvil (AMX) announced that it has entered into a termination agreement with Empresa Nacional de Telecomunicaciones S.A. or ENTEL to terminate the non-binding agreement entered into on July 18, pursuant to which the companies were considering submitting a joint offer for the acquisition of certain assets and businesses related to Telefónica S.A. Chilean operation. América Móvil said it will explore potential participation in such process, individually.

América Móvil is an integrated telecommunications services company in Latin America. Excluding China and India, it is the world's largest in terms of mobile subscribers and total accesses.

Risk Warnings and Disclaimers

Add to Favorites

Telefonica's M&A Strategy, Funding Pose Challenges — Market Talk

Dow Jones Newswires

Telefonica

-2.58%

There are no quick fixes to Telefonica's growth challenge, Citi analyst Siyi He writes. Chief Executive Marc Murtra said at the Spanish telecommunication company's capital markets day on Nov. 4 that he would consider a capital raise for the right merger and acquisition opportunities. "A lot remains uncertain around the investment case, the most obvious being what acquisitions may be attempted, at what price, and with what funding," the analyst writes. Shares are flat at 3.74 euros and down 5% year-to-date. (josephmichael.stonor@wsj.com)

Risk Warnings and Disclaimers

Add to Favorites

Telefonica Scores Provisional Rights to Spain's Soccer League La Liga

Dow Jones Newswires

Telefonica

-2.58%

By Nina Kienle

Telefonica said it provisionally won exclusive rights to broadcast five matches per matchday of Spain's soccer league, La Liga.

The Spanish telecommunications company said Friday that it would pay 2.635 billion euros ($3.06 billion) for the exclusive media rights at an average price of 527.2 million euros a season. The seasons span from 2027-28 until 2031-32, it added.

Telefonica will have first pick in the 19 matchdays of each season, it said.

The company will ensure that Movistar Plus+ customers continue to have access to the matches, including the UEFA soccer competitions recently won until 2031, it said.

The contract is subject to the execution of an agreement, with remaining terms established in a tender, with a period of up to 30 working days from the provisional award, Telefonica said.

Write to Nina Kienle at nina.kienle@wsj.com

Risk Warnings and Disclaimers

Add to Favorites

Spain stocks higher at close of trade; IBEX 35 up 1.36%

Investing.com

Investing.com – Spain stocks were higher after the close on Wednesday, as gains in the Financial Services & Real Estate, Chemical, Petroleum & Plastic and Building & Construction sectors led shares higher.

At the close in Madrid, the IBEX 35 gained 1.36%.

The best performers of the session on the IBEX 35 were Indra A (BME:IDR), which rose 3.16% or 1.40 points to trade at 45.68 at the close. Meanwhile, Banco de Sabadell SA (BME:SABE) added 2.31% or 0.07 points to end at 3.19 and ACS Actividades de Construccion y Servicios SA (BME:ACS) was up 2.04% or 1.60 points to 79.90 in late trade.

The worst performers of the session were Amadeus IT (BME:AMA), which rose 0.19% or 0.12 points to trade at 63.60 at the close. Telefonica (BME:TEF) added 0.32% or 0.01 points to end at 3.74 and Redeia Corporacion SA (BME:REDE) was up 0.39% or 0.06 points to 15.28.

Rising stocks outnumbered declining ones on the Madrid Stock Exchange by 133 to 61 and 13 ended unchanged.

Shares in ACS Actividades de Construccion y Servicios SA (BME:ACS) rose to all time highs; rising 2.04% or 1.60 to 79.90.

Gold Futures for February delivery was up 0.86% or 35.85 to $4,201.05 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in January rose 0.41% or 0.24 to hit $58.35 a barrel, while the February Brent oil contract rose 0.70% or 0.43 to trade at $62.23 a barrel.

EUR/USD was unchanged 0.18% to 1.16, while EUR/GBP unchanged 0.30% to 0.88.

The US Dollar Index Futures was down 0.05% at 99.54.

Risk Warnings and Disclaimers

Add to Favorites

Spain stocks higher at close of trade; IBEX 35 up 1.09%

Investing.com

Investing.com – Spain stocks were higher after the close on Monday, as gains in the Building & Construction, Consumer Services and Financial Services & Real Estate sectors led shares higher.

At the close in Madrid, the IBEX 35 rose 1.09%.

The best performers of the session on the IBEX 35 were ACS Actividades de Construccion y Servicios SA (BME:ACS), which rose 4.56% or 3.30 points to trade at 75.60 at the close. Meanwhile, Unicaja Banco SA (BME:UNI) added 3.51% or 0.08 points to end at 2.47 and Ferrovial (BME:FER) was up 3.47% or 1.88 points to 56.00 in late trade.

The worst performers of the session were Indra A (BME:IDR), which fell 1.29% or 0.58 points to trade at 44.48 at the close. Endesa SA (BME:ELE) declined 0.78% or 0.24 points to end at 30.64 and Telefonica (BME:TEF) was down 0.76% or 0.03 points to 3.65.

Rising stocks outnumbered declining ones on the Madrid Stock Exchange by 139 to 50 and 15 ended unchanged.

Shares in Ferrovial (BME:FER) rose to all time highs; gaining 3.47% or 1.88 to 56.00.

Gold Futures for February delivery was up 0.34% or 14.05 to $4,130.05 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in January rose 1.18% or 0.68 to hit $58.49 a barrel, while the February Brent oil contract rose 0.60% or 0.37 to trade at $62.31 a barrel.

EUR/USD was unchanged 0.01% to 1.15, while EUR/GBP unchanged 0.08% to 0.88.

The US Dollar Index Futures was up 0.09% at 100.21.

Risk Warnings and Disclaimers

Add to Favorites

Telefonica Looking to Cut Over 5,000 Jobs in Spain, Union Says

Dow Jones Newswires

Telefonica

-2.58%

By Adria Calatayud

Telefonica is looking to cut more than 5,000 jobs in Spain, a union spokesman said, as the Spanish telecommunications company seeks to rein in costs.

In talks with labor representatives, the company proposed cutting 5,040 roles in Spain across three different subsidiaries, citing organizational, technical and production reasons, a spokesman from Spanish union UGT said Monday. This would amount to roughly a fifth of Telefonica's workforce in its home country.

Telefonica declined to comment.

The latest proposal comes after another round of job cuts at the group's Spanish operations last year that saw around 3,000 workers leave the company. UGT demanded that the new job cuts be carried out through early retirements, the spokesman said.

At the end of 2024, Telefonica employed around 25,000 people in Spain and around 101,000 globally.

The company recently said it would halve its dividend for next year and outlined measures to cut costs, in an effort to lower debt and invest in its operations.

Write to Adria Calatayud at adria.calatayud@wsj.com

Risk Warnings and Disclaimers

Add to Favorites