Telefonica is considering the possibility of listing its Argentine unit to take advantage of growing investor interest in the emerging market and further reduce its debt, according to unnamed sources cited by Bloomberg. An initial public offering is one of several alternatives being weighed, and Telefonica may also explore network-sharing agreements with other operators, said one of the sources. The company is also reportedly considering an IPO of its O2 UK business before the end of the year as it seeks to reduce a debt level that stands at around EUR 48.8 billion.
The report adds that a local IPO would help Telefonica prepare for a new legal framework allowing Argentine operators to offer fully convergent multi-play plans as early as next year, something cable operators can do already. The company has been highly critical of the Argentine government’s decision to allow Clarin to convert its Cablevision unit into a multi-play operator. Telefonica has repeatedly accused the government of favouritism towards Clarin, saying it effectively allowed Cablevision's Nextel brand to become the country's fourth mobile operator and launch 4G services via spectrum acquired at low cost.
