Regent Logo

Mergers and Acquistions News

Categories: Telecoms

October 28th 2008, 18:14PM

Shareholders in telecommunications operator Telefonica Chile have given their approval to an enhanced buyout bid from the unit's parent company, Spain's Telefonica SA, according to reports.

News service Reuters said the South American subsidiaries' stockholders voted to amend corporate bylaws and allow Telefonica SA to take sole control of the firm.

The Spanish company had upped its starting bid by ten per cent after Telefonica Chile's investors had rejected an approach earlier this month, the site said.

However, 85.85 per cent of the shareholders backed the new proposal, clearing the way for a deal worth more than $1 billion (£642.5 million).

Jorge Delpiano, a legal counsel to the Telefonica SA, told the site: "This is very good, very positive, because the percentage of support has been pretty high and we think the buyback will be a success."

Telefonica SA currently serves around 245.1 million customers worldwide, 60 per cent of whom are based outside of Spain. In South America, Telefonica's customer base numbers 147.9 million people.
ADNFCR-1833-ID-18848021-ADNFCR

 

Related News