Telefonica said it had not received any indication of interest from AT&T. In a statement, the Spanish operator said that it has "not received any approach, nor any indication of interest, neither verbal nor in written form, from any party". The statement follows a Spanish newspaper report that the Spanish government had rejected a EUR 70 billion takeover offer from the US operator.
An AT&T representative told the government about the company's plans to buy Telefonica and take on its USD 52 billion of debt, leading the state to stop the sale, El Mundo reported, citing sources with knowledge of the deal.
According to the same source, the government can block the sale of any company deemed strategic to the national economy. The matter was debated in the Economy and Industry ministries, as well as in Prime Minister Mariano Rajoy's office, the sources added.
