Telefonica agrees merger deal with state

Spain’s Telefonica and the Colombian government will merge Telefonica Moviles Colombia with Telefonica Telecom, the latter part-owned by the Colombian state. Under the agreement, Colombia will assume 48% of pension payment obligations, helping reduce the Spanish company’s net financial debt of around EUR1.3 billion (USD1.734 billion). According to Reuters, the combined company will be 70% owned by Telefonica, with the remaining 30% held by the Colombian government, with the option for the government to increase its stake by 3% in 2015. No date was given for the expected completion of the merger.