Spain will ensure it protects the country’s “strategic autonomy” after Saudi Telecom Co. snapped up a near 10% stake in telecommunications giant Telefonica SA for about $2.25 billion, a government spokeswoman said.
“There are channels to preserve our strategic autonomy that the government sets in motion,” Isabel Rodriguez, who is also minister of territorial affairs, said in an interview with state-run broadcaster TVE. “Telefonica is not just an emblematic company but also a strategic one.”
The Saudi government-controlled company purchased about 569 million shares and is using financial instruments that will altogether hand it a 9.9% interest in Telefonica once approved by regulators, according to a filing posted late Tuesday. Stake acquisitions of more than 5% may require approval from the Spanish government.
