Telefónica in Colombian merger to cut $1.7 billion debt
Monday, April 2, 2012
Telefónica, the Spanish phone company that cut its dividend forecast in December, reorganized its Colombian fixed-line and mobile phone assets to cut debt by $1.7 billion.
Wholly owned wireless division Telefónica Móviles Colombia will merge with fixed-line venture Colombia Telecomunicaciones, which is 48 percent owned by the South American country’s government, the Madrid-based operator said.
Telefónica will hold 70 percent of the combined company and Colombia will hold 30 percent.