Hedged in

20 March 2006 By Mike Verdin

That looks a fair bet. Telefonica will want to buy in Moviles to integrate it with O2. But funds should not overplay their hand. They have driven in the Spanish telecoms operator Telefonica Moviles subsidiary above the E10.54 on offer.

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Telefonica, the Spanish telecoms operator, may improve its offer for the 7.5% of its mobile subsidiary, Telefonica Moviles, which it does not already own, according to Expansion.

Telefonica has offered four of its own shares for five Moviles shares. At Telefonica's share price of 13.17, the deal values Moviles shares at E10.54.

About 56m Moviles shares changed hands on March 16, the day Telefonica announced the deal. That volume was 18 times the 90day average for Moviles shares and the highest since their first day of trading in November 2000.

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