Telefonica shares jumped over 4% on the Madrid stock exchange on Wednesday, following the announcement that the Spanish government had taken a stake in the telecommunications group.

Following its meeting yesterday, the Council of Ministers decided to order SEPI, the holding company responsible for managing the state's industrial holdings, to acquire a stake of up to 10%.

In a press release, the Spanish government explains that this investment - which is intended to be "perennial" - is aimed at guaranteeing Telefonica greater stability in its shareholder base, in order to help it achieve its objectives and preserve its strategic capabilities.

This marks the Spanish government's return to the telecom operator's capital a little over 26 years after exiting as part of the company's privatization process.

According to analysts, this announcement is above all a response to the recent 9.9% stake acquired by Saudi telecom operator stc, which was made official in September.

This decision is consistent with the government's strategy of acquiring major stakes and decision-making power in strategic companies, as was already the case with Indra", say Renta 4 Banco's teams.

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