By Anna Perez
MADRID (EFE Dow Jones)--Telefonica SA Tuesday said it is studying "strategic alternatives" regarding its affiliate in the Czech Republic, Telefonica Czech Republic.
In a filing with the Spanish stock market that came in response to recent press reports, the company said the process involves conversations with the Czech investment group, PPF. Telefonica added that there was no certainty "with respect to the feasibility of reaching an agreement, nor with respect to the eventual terms and conditions."
Telefonica holds about a 70% stake in Telefonica Czech Republic, which is listed in Prague and has a market value of around EUR2.6 billion. Telefonica is trying to cut its debt by selling assets--among them its Irish operations, which were sold in June for 850 million euros ($1.1 billion)--and it's expected to continue with the sale of non-strategic operations such as those in the Czech Republic.
Teleonica's debt reached a peak of EUR56.3 billon in 2011, and the company is seeking to reduce it to below EUR47 billion this year.
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