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
The agency is managing a global communications programme for Telefonica
aimed at encouraging financial institutions to buy shares in the
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
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.