Telefó nica May IPO U.K. Unit O2

MADRID—Telefó nica is considering an initial public offering of its British mobile operator O2 and a partial IPO of its Telxius infrastructure business as the Spanish telecommunications giant seeks to whittle down its debt.

In May the European Commission blocked the company's sale of O2 to CK Hutchison Holdings Ltd., saying it would have resulted in higher prices and fewer choices for U.K. customers. That deal was valued at the time at around $14 billion. Telefó nica executives have since been looking at alternatives.

Telefó nica has already laid the groundwork for a potential IPO of O2. It is considering other options but plans to remain the main shareholder, the Madrid-based said Monday.

Telefó nica said in a separate regulatory filing on Monday that it is launching an IPO of its Telxius infrastructure unit, with a free-float of at least 25%. The IPO is likely to happen before the end of the year, after the company receives regulatory approval for the deal.

Telefó nica has more than €50 billion ($55.78 billion) in debt, which has been a source of concern for credit-rating firms and investors.

Telefó nica shares were up 1% in Monday morning trading in Madrid, valuing the company at €46 billion.

Write to Jeannette Neumann at [e-mail]

(END) Dow Jones Newswires

September 05, 2016 05:15 ET (09:15 GMT)

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