Telefonica Said to Seek EU2 Billion From German Unit IPO

Telefonica SA, which is exploring share sales for its German and Latin American assets, is considering an initial public offering of a 20 percent stake in the O2 Germany unit, said three people familiar with the matter.

Spain’s biggest phone company wants to raise as much as 2 billion euros ($2.5 billion) from the sale, said the people, who asked not to be identified because the discussions are private and the targets may change. Telefonica has an internal goal to cut its debt by a range of 6 billion euros to 8 billion euros this year, said one of the people.