BBVA slashes historic Telefónica stake to under 2%, ending three decades as core shareholder
The Spanish bank sold more than half of its holdings, reducing its stake from 5% to 1.96% in a roughly €600 million transaction, ending a three-decade presence on the telecom's board.
The sale
BBVA has reduced its stake in Telefónica from 5.007% to just 1.965%, according to a filing with Spain’s stock market regulator CNMV on 1 July 2026. The placed block represents just over 3% of the telecom and sources close to the deal peg its value at around €600 million. The divestment strips BBVA of its status as a significant shareholder and pulls it completely out of the stable core that now controls the operator.
- Argentaria enters Telefónica with ~5% stake during privatisation.
- BBVA-Argentaria merger; bank holds three board seats and ~10%.
- STC announces plan to acquire up to 10%, triggering government response.
- SEPI builds stake via derivatives and joins the board.
- BBVA leaves Telefónica board as José María Abril steps down.
- BBVA reduces stake from 5.007% to 1.965%.
A three-decade relationship
The link between BBVA and Telefónica dates back to 1997, when Argentaria – later absorbed into BBVA – took a roughly 5% stake during Telefónica’s privatisation. By the end of the 1990s the holding neared 10%, giving the bank three board seats. Cross-shareholdings were common: Telefónica itself held about 1% of BBVA until it sold that stake in 2025 for €608 million, booking capital gains of €335 million. BBVA’s board representation shrank over time; the last director, José María Abril, left in March 2026 when his mandate was not renewed, replaced by independent director Jane Thompson.
New power balance
The departure reshuffles the shareholder map. The State holding company SEPI holds 10%, CriteriaCaixa 9.9%, and Saudi Telecom (STC) 9.969%, forming the Spanish-Saudi hard core. Financial investor BlackRock recently raised its position to 6.24% after five consecutive increases. BBVA notes that the sale was executed through derivatives, a method reminiscent of SEPI’s secretive 2024 build-up that eventually gave the state a vice-chair on the board.
- SEPI
- 10 %
- CriteriaCaixa
- 9.9 %
- STC
- 9.969 %
- BlackRock
- 6.24 %
What BBVA says
Bank executives frame the move as routine portfolio management. The stake, they stress, was always financial, not strategic. "We have a magnificent relationship with Telefónica in many areas and we will continue collaborating on the many projects we have together," a BBVA spokesman told Europa Press. Chairman Carlos Torres had reiterated a week earlier that the investment was purely financial.
Market reaction
Telefónica shares barely flickered, slipping 0.06% to around €3.51 in early trading. Analysts note the stock had weakened in June in line with other European telecoms. The remaining 111.4 million shares held by BBVA were valued at roughly €391.5 million at that price.
