Business

Telefonica del Peru contract to be defined next week, daily says

By Manuel Vigo

Telefónica del Peru’s future in the country is expected to be settled next week, after two years of negotiations between the Peruvian government and the Spanish telecom giant.

Telefonica del Peru contract to be defined next week, daily says

(Photo: Peru21/Reference)

Telefónica del Peru’s future in the country is expected to be settled next week, after two years of negotiations between the Peruvian government and the Spanish telecom giant.


According to Peru21, Telefónica is preparing a definitive answer, which it will hand over to Peru’s ministry of transport and communications, over the next days.


An unnamed ministry source told the daily, that the Spanish firm considers the government’s terms to be “pretty severe.”


Over the course of negotiations, Telefónica has been vocal about its interest in remaining in the country.


"Soon we will have news. Telefónica is keen to continue with the contract. I can only say that we are in the final stage of negotiations," said Eduardo Devoto, head of the firm’s institutional relations.


Last month Telefónica transferred almost 50 percent of the shares from its Peruvian subsidiary into the firm’s Latin American holding company, as part of an internal deal worth $1.5 billion, and unprecedented transaction for Lima’s Stock Exchange (BVL).


At the time the firm said the deal had been done for “internal reorganization purposes,” and said the deal “does not constitute a change in control at Telefónica del Peru.”