Spanish telecoms group Telefonica will possibly have to sell part of its core business as it struggles with a massive debt burden, reports the Financial Times Deutschland (FTD) citing unnamed sources familiar with the deliberations. It is understood to be considering the sale of subsidiaries in Brazil and the Czech Republic, as well as smaller holdings in Portugal Telecom, Zon Multimedia, Hispasa and Amper. The situation has been exacerbated by the global financial crisis, with the group having to pay significantly higher interest rates on its debt. It also faces the prospect of having to refinance EUR 4 billion in 2012. The sources said that it was looking to save cash across all areas, including the important new business areas being explored to compensate for falling sales in its core domestic market.
