UPDATE: Telefonica: Talks To Buy Sogecable Stake Going Well
October 30 2009 - 8:53AM
Dow Jones News
Telefonica SA's (TEF) talks with media conglomerate Promotora de
Informaciones SA (PRS.MC), or Prisa, to buy a stake in its TV
division Sogecable are going well, Telefonica said Friday.
"We are still interested in a stake in Sogecable, the talks are
right on track," Telefonica's Chairman Cesar Alierta said in a
meeting with journalists.
Prisa, which is struggling with a debt load of nearly EUR5
billion, is seeking to sell stakes in key assets to improve its
finances at a time when the global media industry is facing
unprecedented challenges.
Analysts say Telefonica is especially interested in Prisa's
pay-satellite TV platform Digital+ that has a sizable customer base
and would complement Telefonica's Internet-based pay TV platform,
Imagenio.
Sogecable includes Digital+ as well as the free to air channel
Cuatro.
Last year, Telefonica teamed up with France's Vivendi SA
(VIV.FR) to make a joint bid for Digital+, Telefonica said at the
time. Prisa rejected the offer as too low.
The relationship between Telefonica and Vivendi soured after
Vivendi made a bid for Brazilian telecom GVT Holding SA (GVTT3.BR)
in September, Alierta said.
"We're disappointed with Vivendi," Alierta said. The bid for GVT
was "a surprise," he added.
Telefonica made a higher counter-bid for GVT earlier this
month.
Telefonica is Spain's largest telecommunications company by
market value and customers.
Company Web site: www.telefonica.com
-By Jason Sinclair, Dow Jones Newswires, 34 913958127,
jason.sinclair@dowjones.com