Telefónica will cease buying and selling on Wall Street in 10 days | Economy | EUROtoday

This Thursday, Telefónica offered to the US market supervisor, the Securities and Exchange Commission (SEC), the shape with which it confirms its resolution to voluntarily cease buying and selling on the New York Stock Exchange, so, in keeping with the standard instances for any such process, within the subsequent 10 days the Spanish telecom firm will depart Wall Street after virtually 40 years there.

With the presentation of the shape, as contained in SEC data, the corporate confirms the transfer it introduced on December 17 to cease buying and selling on the New York Stock Exchange, the inventory market the place it landed on June 12, 1987, when it turned the primary Spanish firm on the most important inventory market on this planet.

Specifically, in the course of final month Telefónica introduced its intention to start the process to voluntarily exclude the itemizing of its american depositary shares (ADS), every representing one atypical share of Telefónica, represented by american depositary receipts (ADR), from the New York Stock Exchange.

The operator has clarified that it doesn’t plan to switch these securities to a different regulated market within the United States. However, to offer flexibility to its traders, the present program will change into a Level I ADR Program, which is able to enable them to proceed being traded over-the-counter (marketover-the-counter). On the opposite hand, shareholders who want to take action may have the choice of exchanging their certificates for atypical shares listed on the Spanish inventory exchanges.

Wall Street Withdrawal

After its arrival on the inventory exchanges on the opposite aspect of the Atlantic 4 many years in the past, the usefulness of this itemizing has been reducing weight for Telefónica over time. The lack of negotiation has been the set off for this withdrawal. In 2025, 2,830 million Telefónica shares had been traded on the Spanish inventory market, whereas throughout that very same interval within the US, 193 million depositary shares of the multinational chaired by Marc Murtra had been exchanged.

On the opposite, its presence on Wall Street forces the Spanish multinational to make an additional effort to report data, since being there forces it to additionally regularly report back to the SEC.

In addition, the corporate initiated the mechanism for its senior fastened fee bonds maturing in 2027, 2036, 2038, 2047, 2048 and 2049 to cease buying and selling on the New York Stock Exchange. Regarding this, its plans embrace requesting admission to Euronext Dublin, on condition that it doesn’t plan for these debt securities to be listed on one other US market.

Following the delisting and cancellation of registration within the United States, which is anticipated to happen within the subsequent 10 days, the corporate’s frequent shares will proceed to be traded on the Spanish steady market, the place the vast majority of Telefónica’s home and worldwide traders at present commerce the telecom’s frequent securities.

When its exclusion from Wall Street is formalized, the corporate will solely be listed on the Madrid and São Paulo Stock Exchanges. Its subsidiary Telefónica Brasil is listed on this final market, which operates within the nation beneath the Vivo trademark. In Germany, one other of its precedence markets, it stopped buying and selling after the general public exclusion provide it launched in April 2024 for its subsidiary Telefónica Deutschland. Nor does it accomplish that within the United Kingdom, the place it operates by way of Virgin Media O2, the joint enterprise al 50% con Liberty Global.

Stock market retreat

Telefónica’s withdrawal from the inventory market is just not a present technique, however has gone hand in hand with the lack of investor curiosity in a really mature sector reminiscent of telecommunications, particularly after the explosion of the dotcom bubble at first of the century. In this context, Telefónica Advertising and Information (TPI) ceased buying and selling in March 2007 after being purchased by the British Yell after struggling a collapse following a bullish rally when this subsidiary of the Yellow Pages was within the fingers of Telefónica.

Much extra symptomatic was the autumn of Terra, Telefónica’s first Internet subsidiary, which ceased buying and selling on the inventory market on July 15, 2005, after being utterly absorbed by its dad or mum firm. His finish within the inventory markets occurred after starring in one of many largest speculative processes within the Spanish market as a logo of the dotcom bubble. It went public on November 17, 1999 and was value greater than BBVA regardless of having virtually no property and minimal revenue. Its collapse was as abrupt as its launch and ended with lawsuits from the small affected shareholders.

The lifetime of Telefónica Móviles shares on the inventory market was not very lengthy both. The subsidiary’s securities went public in November 2000 and had been withdrawn in July 2006, because of restricted buying and selling. Regarding overseas subsidiaries, in 2008, Telefónica launched a takeover bid for 55.1% of its Chilean subsidiary, and in 2024, for its German subsidiary to exclude them from the inventory market.