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Telefoníca denies DT talks
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July 16, 1999: 4:09 a.m. ET
Spanish telecom giant says its not talking merger with Deutsche Telekom
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LONDON (CNNfn) - Privatized Spanish telecom giant Telefoníca denied reports Friday that it is close to a merger agreement with Deutsche Telekom.
Deutsche Telekom shares jumped 1.7 percent in early trading despite Telefoníca's denial of a report carried in German newsletter Platow Brief. Telefoníca was up 0.3 percent in early trade.
Deutsche declined to comment on the report.
The German giant has been seeking to revive its international strategy since the collapse of its planned merger with Telecom Italia in May and the near-breakdown of its wide-ranging alliance with France Telecom.
Deutsche chairman Ron Summer has been under pressure to land a big deal since the humiliating defeat by Olivetti in the battle for Telecom Italia. Deutsche reportedly has dropped out of the bidding for One2One, the U.K. cellular operator, because of the high asking price.
Telefoníca had 1998 revenues of $20.4 billion and derives a quarter of its sales from outside Spain after expanding rapidly in Latin America, including the acquisition of Brazil's Telebras. 
-- from staff and wire reports
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