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Telefonica Plans German IPO After Investors Lose $60 Billion

Telefonica SA, whose market value has slumped by $60 billion in 1 1/2 years, plans to sell shares in its German and Latin American phone units, raising cash to restore debt ratings threatened by Spain’s financial crisis.

Telefonica’s board yesterday approved a proposal to seek an initial public offering for O2 Germany, and to explore possible listings for its Latin American assets. The Madrid-based company will speed up the sale of non-core businesses and cut the cash portion of its 2012 dividend by 69 percent.