Telefonica (TEF) in Talks with Bain Capital Over Possible EUR 700M Call-Center Sale

July 24, 2012 12:20 PM EDT
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Telefonica S.A. (NYSE: TEF) shares are at intra-session lows Tuesday amid Bloomberg reporting that it might be in a deal with Bain Capital for its call-center division.

According to the report, Telefonica might unload the unit, named Atento, for about €700 million ($846 million).

Another PE firm which has showed interest, but has been rather mum about moving forward is Permira Advisers LLP. The firm is said to be remaining in contact with Telefonica.

The move comes following a $1.4 billion sale of China Unicom (NYSE: CHU) assets last month and following a ratings cut from Standard & Poor's in May. As Spain has been hit by the downturn in the European economy, so has one of its largest telecom providers.

Though a deal might be announced as soon as this week, sources for Bloomberg cautioned that nothing is set in stone yet and discussions could fall apart.

Telefonica is down just shy of 6 percent in early afternoon trading.

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