Telefonica has bought €100m (US$126m) of bonds in indebted Spanish media conglomerate Prisa that are convertible into shares, which could be a first step to acquiring the company.
The two-year bonds Telefonica has bought account for the second…
Telefonica has bought €100m (US$126m) of bonds in indebted Spanish media conglomerate Prisa that are convertible into shares, which could be a first step to acquiring the company.
The two-year bonds Telefonica has bought account for the second tranche of convertible bonds issued by Prisa, according to a statement from the media conglomerate. The first tranche of €334m (US$419m) was bought by three of its creditor banks: Banco Santander, Caixabank and HSBC.
The proposed share conversion price is €1.03 apiece and the initial conversion rate will be 97,087.37 class A shares per bond. The bonds will convert to shares automatically on their maturity in 2014. Telefonica paid cash for the securities, which, according to Reuters, effectively give the telco a 5% – 6% stake in Prisa.
The move can be seen as a strategic attempt by Telefonica to block Carlos Slim’s America Movil from increasing its 3.23% stake in Prisa.
