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Telefónica plans Net IPO
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September 22, 1999: 10:42 a.m. ET
Spanish telecom sets November listing of minority stake in Web unit
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LONDON (CNNfn) - Telefónica S.A., Spain's dominant telephone service provider, plans to list its telecom subsidiary, Telefónica Interactiva, on the Spanish stock exchange and the Nasdaq technology market in November, according to a published report.
The planned sale of 20 to 30 percent of the unit will be coordinated by Goldman Sachs and the Spanish banks Argentaria and La Caixa.
Telefónica officials in Madrid weren't immediately available for comment Wednesday.
But Reuters news agency quoted a source as saying a blackout period will begin Oct. 1, paving the way for the sale of a stake in the subsidiary in the first or second week of November.
Telefónica, which gets more than a quarter of its revenue from Latin America, reportedly intends to use proceeds from the sale to fund expansion of its interactive arm into Spanish and Portuguese-speaking countries.
Telefónica provides fixed-line and mobile phone services in several countries in Latin America, including Argentina, Chile, Brazil and Peru. In Spain, the former monopoly operates 16 million local phone lines and runs a mobile communications network with more than 5 million subscribers.
Telefónica's reported interest in taking its Net unit public underscores a growing trend by companies to try to unlock capital by harnessing the potential power of a dot,com listing.
Last week, Scottish Power, Britain's largest utility, announced plans to sell a minority stake in its telecom business, Scottish Telecom. The sale could raise up to $2.4 billion for the company, according to some estimates. 
-- from staff and wire reports
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Telefónica
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