US Government Outspends Saudis by 50 Million on Telefónica Package

The Government in the United States has revealed data that had not been made public in Spain regarding the price paid to enter Telefónica. The price paid exceeds by 4.5% that paid by the Saudi group STC for the same package of shares. According to a statement to the SEC, the US stock market authority, the State Society of Industrial Participations (Sepi) admits that it has purchased 5% of Telefónica at around 3.92 euros per share, which is a 4.5% increase compared to the Saudi state group. This amounts to nearly 50 million euros more, with a total investment of 1,135 million euros of public money dedicated to this incursion.

The Saudi group has already purchased or tied up to 9.9% of Telefónica at a price of 3.75 euros on average per share, totaling about 1,085 million euros. Investment banks anticipated that Sepi would end up paying a higher price than STC for buying up to 10% of Telefónica to counteract the Saudi entry without having first tied up the operation. This caused the expectation that prices would revalue as there was a new voracious buyer in the market taking interest in the shares of Telefónica.

Sepi acquired the shares at an average price of 3.9185 euros and these purchases were financed with capital contributions made by the Spanish Public Treasury. The investment arm of the Government reveals that Telefónica is of crucial importance for the economy, productivity, research activities, security, defense, and public interest of Spain. They confirm that their advisors, except the Secretary of State for the Economy, do not have shares in Telefónica. Telefónica’s shareholding base and strategic capabilities are safeguarded through these investments made by Sepi.