Telefonica Ups The Ante

Spanish telecoms operator Telefónica SA (Telefónica) has raised its offer for its Chilean affiliate Telefónica Chile (CTC) by 10%, sending CTC stock up by over 17% in midday trade on October 13. Last week, minority stockholders of Telefónica Chile blocked a bid by parent Telefónica to buy outstanding shares which would bring its ownership to 100%. Stockholders voted against modifying corporate by-laws that would have allowed the buy-out offer. Although the fixed-line market in Chile has already begun to decline there are considerable opportunities in the broadband market, and Spain-based Telefonica wants to capitalise on the rising demand for broadband services in Telefónica Chile's domestic market.

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