The Spanish government is considering buying a stake in Telefonica SA following Saudi Telecom Co.’s plan to become the Spanish telecommunications carrier’s largest shareholder.
SEPI, the government’s corporate holding group, hasn’t yet made a final decision, it said in a regulatory filing on Tuesday.
Spain has been analyzing Saudi Telecom’s plan to take a nearly 10% stake in Telefonica for about €2.1 billion. The government required the Saudi company, which is controlled by the kingdom’s sovereign wealth fund, PIF, to obtain special approval for such a large holding because Telefonica supplies Spain’s military and defense ministry.
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