MADRID, Dec 17 (Reuters) - Spanish telecoms giant Telefonica said on Wednesday it would delist its American Depositary Shares (ADS) from the New York Stock Exchange, citing the administrative burden
Telefonica to Remove ADSs from NYSE Due to Costs
MADRID, Dec 17 (Reuters) - Spanish telecoms giant Telefonica said on Wednesday it would delist its American Depositary Shares (ADS) from the New York Stock Exchange, citing the administrative burden and cost of keeping them listed.
The move comes as Telefonica seeks to streamline its business under the new five-year strategic plan unveiled last month that targets lower debt and operating costs.
The company has recently divested itself of subsidiaries in Argentina, Peru, Colombia, Uruguay and Ecuador, in a bid to reduce its exposure in Latin America.
It is also negotiating a layoff plan in Spain with unions.
In a filing, Telefonica said it did not plan to list the ADSs on another U.S. exchange. Current ADS holders will have the option to exchange them for ordinary shares traded in Spain.
The company said it would file the required paperwork with the U.S. Securities and Exchange Commission in the coming weeks, with the delisting becoming effective 10 days after the filing.
"This decision is not expected to have any impact on Telefonica's customers and partners or on its commercial presence in the United States," it added.
In the same statement, Telefonica said it also intended to delist its ADSs from the Lima Stock Exchange.
(Reporting by David Latona; Editing by Andrei Khalip)
