Convergencialatina
Thursday, November 28, 2019

The arguments that Álvarez-Pallete did not give

It was a hotbed in Latin America when Telefónica arrived in the region 30 years ago. Therefore, it is difficult to understand the argument of its executive president, José María Álvarez-Pallete, in the sense that the region is unstable and for that reason they will only concentrate their growth, development and investment efforts in Brazil, Spain, Germany and the United Kingdom.

Telefónica entered Latin America by buying cheap state-owned companies that, by the way, were behind in their investments and in their technology. And, for example, within a few years of arriving in Argentina that operation represented about half of the Ebitda of the parent company. And Telefónica expanded thanks, in part, to the profits that turned from the region. It was not the Potosí silver, but the contribution was important. The proof of this strengthening is that at the beginning of the 21st century, Telefónica's share was trading at more than 22 euros, about two-thirds more than at present.

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