Merger wipes EUR1.3bn from Telefonica debts

Telefonica of Spain has confirmed that the merger of its two Colombian operations, wireless provider Telefonica Moviles Colombia and partially state-owned fixed line operator Telefonica Telecom has reduced the Spanish group’s net debt by EUR1.3 billion (USD1.64 billion). As previously noted by CommsUpdate, as part of the deal, the Colombian state assumed responsibility for 48% of the company’s pension payment obligations. The combined company is now owned 70% by Telefonica and 30% by the Colombian government.