Telefónica Group increases shares in Telefónica Deutschland: financial expert gives assessment

Telefónica Group increases shares in Telefónica Deutschland: financial expert gives assessment

According to a report by www.heise.de,

The Spanish Telefónica Group has completed its takeover offer for its subsidiary Telefónica Deutschland and now holds 93.1 percent of the shares. By purchasing additional shares for 1.48 billion euros, Telefónica was able to increase its stake in the German subsidiary from 71.8 percent to 93.1 percent. The offer to take over the remaining shares was 2.35 euros per share, compared to a previous closing price of 1.70 euros per share.

This acquisition has potentially far-reaching implications for the market and the financial industry. On the one hand, Telefónica Deutschland will most likely leave the MDAX small cap index, as the requirement for this is that at least 10 percent of the shares are in free float. Due to Telefónica's significantly increased share, this should no longer be the case.

Furthermore, Telefónica could now also carry out a “squeeze-out” of the remaining shareholders, which means that they will be compulsorily compensated. This would have an impact on the company's ownership structure and market dynamics.

Overall, the Telefónica takeover of Telefónica Deutschland is a significant event for the market and investors and could lead to changes in the financial industry.