Telefónica unveils share buy back plans

13 Oct 2003

Spanish operator Telefónica has said it will spend EUR4 billion over the next three years to buy back around 7% – 8% of its own shares. Whilst undoubtedly welcomed by the company’s shareholders, news of the plan failed to impress the analyst community, which had expected a larger figure to be touted. Earlier this year Telefónica paid its first dividend to shareholders since 1998. Under the programme outlined at the weekend by chairman Cesar Alierta, the company will spend a total of EUR11.5 billion between 2003 and 2006 on buying back stock and making dividend payments to shareholders.