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October 3, 1991


By CBR Staff Writer

Continuing its divestment of non-telecommunications service interests – and in this case at the behest of the European Commission, Telefonica de Espana SA has reached agreement for the sale of its 10% holding in Telettra Espana SA to Alcatel NV on undisclosed terms: Alcatel has already bought Telefonica’s 10% stake in the parent Italian company Telettra SpA for $199m, and the Commission also wants Alcatel to buy Telefonica’s 21% of Alcatel Standard Electric SA, but no deal has yet been struck on that; Alcatel has a stake of about 90% in Telettra SpA as part of a deal in which that company’s former parent agreed cross-shareholdings with Alcatel’s French 63% shareholder Alcatel Alsthom SA – formerly CGE.

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