By Kim Richters
Shares in Telefonica SA traded higher on Wednesday after subsidiary Telxius Telecom SA agreed to sell its European and Latin American telecommunication-tower divisions for 7.7 billion euros ($9.40 billion).
At 0903 GMT, Telefonica shares were up 8.5% at EUR3.91.
Under the agreement, Telxius is selling roughly 31,000 telecommunication-tower sites to real-estate investment trust American Tower Corp.
The Spanish telecommunications company owns the majority share in Telxius, while investment firms KKR and Pontegadea hold minority shares.
The deal shows a better multiple than anticipated, said analysts at Citi, who had expected proceeds of EUR5.8 billion.
The transaction is also boosting the strategic alliance between Telefonica and American Tower, the analysts say.
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(END) Dow Jones Newswires