Telefonica and Unicom connect

Spain’s Telefonica has reached a deal with China Unicom that will see the firms buy $1bn worth of each other’s shares as part of a strategic alliance. Telefonica said that its stake in Unicom would rise to about 8.06 per cent, while Unicom would hold between 0.885 and 0.892 per cent of Telefonica. The new deal could add pressure on Unicom’s domestic rivals to seek similar tie-ups as they build out complex 3G networks following an industry restructuring.