The State will continue to buy shares of Telefónica through the State Society of Industrial Participations (SEPI) "as soon as possible" until reaching a maximum of 10% of the capital, the Spanish Government spokeswoman, Pilar Alegría, said yesterday. His words had an immediate effect on the stock market, as the multinational's shares were revalued and achieved a 1.83% rise at the close of the market, up to 4.06 euros.
The spokeswoman for the Executive added that the terms to complete the purchase of titles "will be done in the shortest possible time, as long as it does not affect the quotation". SEPI, which is counting on the participation of large private financial entities for its acquisitions, is obliged to notify the National Stock Market Commission (CNMV) when it reaches a 5% stake.
The State's return to Telefónica "will provide greater shareholder stability" to the multinational and "safeguard the strategic capabilities of a strategic company for national interests", insisted Alegría. SEPI was placed on Monday as the fifth shareholder of the multinational behind STC, BBVA, CaixaBank and Criteria Caixa, and BlackRock.
The Spanish Government and SEPI have avoided mentioning STC, the Saudi Arabian company whose surprise entry into Telefónica spurred the move being implemented by the Ministry of Finance. The government spokeswoman insisted yesterday that the mechanism used to acquire part of the company's capital is a "formula that is being carried out in other countries" around Spain.
Both SEPI and STC, if they receive the relevant authorizations from the Spanish Government, would have the right to request access to Telefónica's board of directors. However, this movement is not expected in the short term, financial sources explained yesterday. At this moment, the highest governing body of the company is composed of 15 members. In the agenda of the general meeting of shareholders on April 12, the renewal of all of them will be considered. According to the regulations of the meeting, shareholders who represent at least 3% of the share capital can request a supplement to the call including one or more items on the agenda, but it must be within five days of the publication of the call. This term has already expired, so that, in the imminent call, Telefónica cannot appoint directors other than those already listed in the proposed agenda. In any case, this could only be done in the medium term through an extraordinary general meeting.
The Minister of Foreign Affairs, European Union and Cooperation, José Manuel Albares, also yesterday defended SEPI's entry into Telefónica when he affirmed that the operation obeys that "security is also economic security" in "vital" strategic sectors for the country".
