The State Society of Industrial Participations (SEPI) confirmed yesterday that "it is carrying out an internal exploratory analysis related to a possible acquisition of a shareholding in Telefónica." A brief statement sent to the National Securities Market Commission (CNMV) confirming the rumor that the State could buy 5% of the capital of the country's main telecommunications operator and re-enter its capital after its privatization in 1999.
Government sources explain this interest because they consider that Telefónica is a “strategic” company due to its important role in the field of telecommunications and defense. The aim of maintaining a hard core of national shareholders fits into this objective. At this moment, BBVA leads the shareholding, with 4.87%. CaixaBank is further away, with 3.5%.
BBVA distanced itself yesterday from the possibility of reinforcing Telefónica's Spanish hard core, stating that it does not rule out selling its stake. “We are not considering increasing our shares at all,” said CEO Onur Genç. The entity does not consider this financial position strategic and it is available for sale.
The last word on a possible state investment in Telefónica therefore passes through the SEPI, dependent on the Treasury, market sources indicated. One of the vehicles that the State could use to reinforce this Spanish core is Indra, the company owned by the State at 27.99% and with other national shareholders such as SAPA and Escribano, specialized in defense and technology that in some aspects is a competitor. of Telefónica.
Analysts yesterday asked Indra's president, Marc Murtra, if the company would be interested in investing in Telefónica. He responded that the company takes its investments “very seriously” and does not comment on “speculation.” However, government sources assure that the possibility of Indra being part of a shareholding operation in Telefónica is not ruled out.
The main problem for a State entry would be financial. 5% of Telefónica at market price is around 1,000 million, which should come from the public coffers. It represents, more or less, what was lost due to subsidizing the VAT on the electricity bill for one year.
Sumar positions itself in favor of the State participating in strategic sectors. Yolanda Díaz therefore supports a possible operation in Telefónica.
Yesterday the Government avoided comments on its intentions, although since the intentions of the Saudi fund STC to acquire 9.9% of the capital of Telefónica became known, the vice president and acting Minister of Economy, Nadia Calviño, has always shown her concern. for such a strong presence of an Arab fund in a strategic company for the country
"From the Government we will continue defending the strategic interest of our country and, at the same time, encouraging and attracting foreign investments in order to continue promoting the attraction of new technologies, innovation, growth and job creation," government sources assured. It would mean “squaring the circle,” as defined by sources in the telecommunications sector.
Until yesterday, entering Telefónica was already a challenge for the State. “They could have negotiated for STC to give up the 5% it has in derivatives through Morgan Stanley, but this would mean at least a disbursement of 1,000 million euros, at the company's market price at the close of Monday,” explain sector analysts. . In this way, the Spanish Government would prevent a sovereign fund from an Arab country from entering the board of directors of Telefónica and having access to sensitive information on the country's security. In the financial sector this possible movement is not liked. “We would be setting a bad example and doing little to help Spanish companies, such as Telefónica itself, that take strong positions in international companies such as Vivo in Brazil,” they warn.
It should be remembered that STC, with 4.9%, could already have access to Telefónica's decision-making core, the board of directors. However, he has not yet requested it and “is not in a hurry to do so, for the moment,” say sources in the sector. These same sources do not understand much of the noise that the Saudi movement has produced. “Sovereign funds are long-term investors who seek more or less assured returns and without much interest in taking control of companies,” they argue.
