Why Shares of Telefonica Are Up Today
Shares of Telefonica (NYSE: TEF) jumped 10% on Wednesday after the Spanish telecom company agreed to sell its European and South American towers and related assets to American Tower (NYSE: AMT). The deal makes sense for both parties, and as of this writing shares of American Tower are up slightly as well.
On Wednesday Telefonica said its Telxius Telecom unit has agreed to sell towers in Spain, Germany, Brazil, Peru, Chile, and Argentina for 7.7 billion euros, or about $9.41 billion in cash. American Tower is buying 30,722 tower sites, with Telefonica cellular operators maintaining current lease agreements to continue to transmit from the towers.
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Source Fool.com
