Telefonica: AlphaValue reacts to 'impressive' deal price
(CercleFinance.com) - AlphaValue maintains its "buy" rating on Telefonica shares, after the Spanish company signed an agreement with American Tower for the sale of its towers division for 7.
7 billion euros.
"It's indeed an impressive price and Telefonica succumbed logically to the sirens of American Tower to reduce its debt a little more," the Paris-based independent research house said in its reaction comments.
Once the transaction is complete, Telefonica's net debt will be reduced by about 4.6 billion euros, AlphaValue said.
The Telefonica shares were up nearly 10% on the Madrid Stock Exchange on this news.
AlphaValue has a 6.85 euro price target on the stock, allowing for upside potential of 90%.
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