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Mergers and Acquistions News

Categories: Telecoms

January 24th 2011, 16:48PM

Telefonica, one of the world's largest telecommunications companies by market capitalisation, has strengthened its partnership with China Unicorn by increasing its share capital in the firm to around 9.7 per cent.

In a mutual investment move, Telefonica and China Unicorn will both invest $500 million in each other through share purchases - this will raise China Unicorn's interest in Telefonica's share capital to 1.37 per cent.

The firms also want to enhance their cooperation in areas such as mobile platforms, procurement, and roaming.

Telefonica and China Unicorn are shoring up the first deal they struck together, when the two companies invested $1 billion in each other's shares and created a Strategic Alliance Agreement in 2009.

Mr Cesar Alierta, Telefonica's chairman, said the firms have a combined customer base of 590 million, equivalent to approximately ten per cent of the population. The businesses intend to "compete globally in the best conditions ever and jointly lead the new digital world, benefiting both our shareholders and customers", he said.

Last year, Telefonica was the first company to carry a 'green' version of Nokia's N8 and C7 handsets in Spain, before a worldwide rollout.ADNFCR-1833-ID-800360682-ADNFCR

 

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