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Is Telefonica a maverick or a trend-setter? The Spanish telecom giant kicked off the New Year by exploding the traditional strategy of multinationals to maintain or increase separate stock market listings for their foreign subsidiaries. It said it was taking private four of its quoted Latin American minorities.
The market’s reaction was almost unanimous: good for Telefonica (the shares soared 6.1% on the announcement), maybe not so good for Latin American stock markets. Telefonica bid a 40% premium to the average price over the last five trading days for each company, a “good and fair deal” says Tim Hirst, telecom analyst at Salomon Smith Barney in London. |
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