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Telefonica (TEF -3.6%) is planning some big moves. The Euro/Latin American telecom giant, which...

Telefonica (TEF -3.6%) is planning some big moves. The Euro/Latin American telecom giant, which now sports a P/E below 6 and a 9% dividend yield, is eying and IPO for its O2 German subsidiary, and is also thinking of a public listing for its faster-growing Latin American ops, and changing its dividend structure. Telefonica claims the moves will help lower its high debt ratio.
Comments (4)
  • Christian Alpers
    , contributor
    Comments (102) | Send Message
    They will probably get better valuations for those assets than they would selling their own equity, but in this market, the question is how much better. When you have a lot of leverage, your options are shrinking in a credit crunch. Tough.
    30 May 2012, 12:58 PM Reply Like
  • Desperado2012
    , contributor
    Comments (95) | Send Message
    I cannot see how this is going to work since it already owns 75 % in VIV. I cannot believe that Spain would never come back and I have know idea how 02 is doing in Germany! Oh, why? I just wanted to buy all outstanding shares at its lowest price! I have been waiting for the moment and I am in the red on TEF!
    30 May 2012, 03:58 PM Reply Like
  • DAKelsey
    , contributor
    Comments (13) | Send Message
    I defy anyone to figure out what Telefonica is doing with 2012 dividends. They maintain they are distributing 1.5 euros per share for 2012 while at the same time paying .53 euros on 5/31/12 and announcing .4 euros will be paid in November 2012. Where are the other .57 euros??
    31 May 2012, 03:08 PM Reply Like
  • zippy4u
    , contributor
    Comments (2) | Send Message
    Now that my investment is down by 1/2, they are also going to cut the dividend? A year ago, all the smart commenters were talking this one up big time. No more foreign stocks for me!
    31 May 2012, 03:42 PM Reply Like
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