Spain’s National Securities Market Commission (CNMV) has concluded that neither Saudi Arabia’s stc Group or its financial advisor Morgan Stanley acted illegally in acquiring a 9.9% stake in Telefónica.
Quoting sources close to CNMV, Cinco Dias reports that the regulator investigated and gathered information in recent weeks about how Morgan Stanley secretly built up its stake in the Spanish incumbent on the instructions of stc Group. It concluded that there was no violation in communicating all capital positions exceeding 3%.
Cinco Dias notes that investors must contact CNMV if the stakes they hold in companies exceed 3%, though this figure is lowered to 1% if they are located in tax havens. However, in the case of investment banks the figure stands at 5%.
As previously reported by Broadband TV News, stc Group announced earlier this month that it had acquired a 9.9% stake in Telefónica for €2.1 billion.
It subsequently emerged that Morgan Stanley had bought the stake on behalf of stc Group, building it up gradually.