Spanish telecoms giant faces takeover

17th November 2004, Comments 0 comments

17 November 2004, PARIS- Spanish telecommunications operator Auna might be the target of an EUR 11 billion (USD 14.3 bn) takeover by five investment funds, the Financial Times newspaper reported.

17 November 2004

PARIS- Spanish telecommunications operator Auna might be the target of an EUR 11 billion (USD 14.3 bn) takeover by five investment funds, the Financial Times newspaper reported.

If the transaction went ahead it would be by far the biggest leveraged buyout in Europe, the report said, quoting sources close to the matter.

A leveraged buyout is based on the principle of using the expected earnings of a company to help buyers pay for the business.

The funds believed to be involved were US funds Blackstone, Carlyle and Providence and British companies Apex Partners and CVC Capital.

Auna is the second-biggest Spanish telecommunications operator after Telefonica with interests in fixed line telephony and is the third-biggest operator of mobile phone networks.

The consortium of investment funds was being advised by Lazards, the report said.

Auna had recently been seeking an alliance with Spanish cable operator ONO.

On Tuesday ONO rejected a takeover bid by Auna worth EUR 2.4 bn.

Analysts said that Auna's strategy had been to create a group big enough to compete with the leading Spanish operator Telefonica.

[Copyright EFE with Expatica]

Subject: Spanish news

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