Telefónica Deutschland will be deleted from the MDAX and TecDAX – implications for ETFs and share prices

Telefónica Deutschland will be deleted from the MDAX and TecDAX – implications for ETFs and share prices

According to a report by www.finanzen.net, the complete takeover of the German subsidiary of the Spanish telecommunications company Telefonica is imminent. The consequences of the takeover also extend to Telefonica Deutschland's index listing, as the company will be deleted from the MDAX and TecDAX. After the takeover offer expired, the shareholding in the Telefonica subsidiary rose to over 93 percent and therefore no longer meets the necessary condition of a free float of at least ten percent for listing in the indices.

As a result of the deletion from the MDAX, the Luxembourg industrial recycler Befesa will be included in the index of medium-sized stocks on January 25th, while the office furniture retailer TAKKT will take its place in the SDAX. These index changes primarily have an impact on funds that actually replicate the indices, as a corresponding reallocation is necessary, which in turn can affect share prices.

In XETRA trading, Telefonica Deutschland shares closed 0.47 percent higher at 2.36 euros.

With the deletion from the indices and the resulting impact on funds and stock prices, the financial industry will have to make major adjustments to respond to the new index changes. This could lead to increased volatility and new trading strategies to minimize the impact of the rebalancing on portfolios. It is important to monitor these developments closely in order to make informed investment decisions.