Today Telefonica decided to sell off all of its treasury stock as part of its ongoing effort to cut its debt load. The 90,067,896 shares were sold at €10.80, adding a bounty of €975M to the company’s balance sheet and increasing the company’s shares outstanding by just under 2%.
The Spanish-based global carrier wants to get its net debt below €47B by the end of 2013 from €51B as of the end of 2012. This gets them more than a fifth of the way toward that goal in one hop, at the cost of the dilution of existing shareholders of course.
To get the rest of the way there, Telefonica is expected to continue selling off non-core assets. For example they recently sold their British wireline business to BSkyB for £200M.
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