BUZZ-Telefonica rises after selling its Argentinian unit at higher-than-expected valuation

Shares of Spanish telecoms company Telefonica TEF.MC rise around 1.8% after it said on Monday it sold its unit in Argentina for $1.245 billion to Telecom Argentina TECO2m.BA

Banco Sabadell says it's a positive news as the rumoured valuation is more than twice broker's own valuation of 490 million euros ($512.93 million)

"In any case, we will have to wait to see what concrete actions the Argentine government's potential opposition will lead to, to see if the operation finally goes ahead," it adds

Renta 4 Banco also says the sale price is higher than market expectations of around 1 billion euros and broker's valuation of 825 million euros

It adds it is awaiting further divestments in HispAm, such as Colombia, Peru, Mexico and Uruguay

J.P. Morgan notes the acquisition could lead to large synergies and potential market repair, as Argentina would become a 2-player telco market shared by Telecom and America Movil AMXB.MX

It notes, however, that it remains uncertain whether additional regulatory approvals are needed, and there seems to be relevant opposition to the deal from the government, which could result in sizeable remedies or even a rejection

($1 = 0.9553 euros)