Sell-off of main phone firm sees Citigate gain in Spain

Citigate Communications is set to reap fees worth up to pounds 250,000 for its work with Spanish telecommunications giant Telefonica de Espana, which took the final steps towards full privatisation last week.

Citigate Communications is set to reap fees worth up to pounds

250,000 for its work with Spanish telecommunications giant Telefonica de

Espana, which took the final steps towards full privatisation last

week.



The agency is managing a global communications programme for Telefonica

aimed at encouraging financial institutions to buy shares in the

company.



The government is selling off its remaining 20.9 per cent stake and has

reserved 42 per cent of the sale for foreign markets.



Capitalised at around pounds 12.7 billion and employing 60,000 people,

Telefonica is Spain’s biggest company. As well as being the country’s

main provider of fixed link telephone services, it is also the largest

mobile operator and holds stakes in several Latin American firms.



Citigate beat off competition from Dewe Rogerson, Brunswick, Lowe Bell

Financial and Ludgate late last year. In 1995 Dewe Rogerson advised on

the sale of a 12 per cent stake in Telefonica.



Although Citigate has worked with Telefonica since November, a formal

contract was only signed this month. The agency is giving strategic

advice and providing media relations and road show support. Particular

emphasis is being given to markets in the US, Europe and the Far

Eastern.



Citigate’s task is complicated by the success of the domestic retail

offering which has pushed up the share price and discouraged some

foreign institutions from taking interest.



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