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Spain's Telefonica sells Telecom Italia stake

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Spain's Telefonica sells Telecom Italia stake
Spanish telecom giant Telefonica said on Wednesday it had sold its 8.2 percent stake in Telecom Italia. Photo: Tiziana Fabi/AFP
08:42 CEST+02:00
Spanish telecom giant Telefonica said on Wednesday it had sold its 8.2 percent stake in Telecom Italia to French media group Vivendi, in a deal estimated to be worth more than a billion euros.

"Telefonica has transferred... 1.11 billion ordinary shares in Telecom Italia... to Vivendi," the Spanish firm said in a statement to the Madrid stock exchange.

"Telefonica hereby announces the divestment of its entire shareholding in Telecom Italia."

In return, Vivendi transferred back to Telefonica a 4.5 percent stake that the French company had earlier acquired in Telefonica's Brazilian subsidiary.

The deal was one of a series of transactions in a complex agreement signed on September 19th for Telefonica to take control of Brazilian telecom firm GVT from Vivendi.

Telefonica said the deal overall would yield it a pre-tax gain of €380 million ($426 million).

The deal boosted Vivendi's stake in Italy's biggest telecom provider to 14.9 percent, Bloomberg reported. It said Telefonica sold the shares for about €1.03 billion.

Telecom Italia shares closed 1.09 percent lower at €1.18 euros in trading in Milan on Wednesday.

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