Spain-based telecom operator Telefonica is considering an investment of about 800 million euro to build up its ownership in two state-controlled Chinese telecommunications companies ­ China Unicom and China Netcom.

Spain-based telecom operator Telefonica is considering an investment of about 800 million euro to build up its ownership in two state-controlled Chinese telecommunications companies ?? China Unicom and China Netcom. Telefonica, which currently holds a 5 per cent stake in China Netcom, is expected to soon get clearance to raise its stake to 7.2 per cent in the company. The Spanish operator will then further increase its holding in China Netcom in a two-part deal. In the first part of the deal, Telefonica will acquire 2.71 per cent of China Netcom for about 368 million euro, bringing its stake in the company to 9.91 per cent. In the second step, it will buy shares in the new company resulting from the merger of China Netcom and China Unicom, ending up with a stake of 5.5 per cent in the enlarged entity.