Deals
Telefonica Said to Weigh Debt-Cut Moves With U.K. Deal at Risk
- British IPO, finding another buyer for O2 said to be discussed
- Shareholders could face dividend reductions by Spanish carrier
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Telefonica SA, facing opposition from European Union officials to the planned sale of its British mobile-phone business to competitor CK Hutchison Holdings Ltd., is formulating a Plan B to help preserve its credit rating.
The Spanish carrier has been counting on the 10.3 billion pound ($14.6 billion) sale of the O2 unit to reduce 49.9 billion euros ($56.5 billion) in debt. With the deal in danger of being blocked, executives at Telefonica are discussing alternatives, according to people with knowledge of the situation.