Shareholders of Spanish telecommunications giant Telefonica Friday approved a euro922m increase in capital to allow the conglomerate to follow through on plans to buy out 100% of four of its Latin American interests: Telesp and Tele Sudeste Celular of Brazil, Telefonica of Argentina and Telefonica of Peru. Telefonica will offer a little more than 922 million new shares at a value of 1 euro each in exchange for shares in the four Latin American firms.

Shareholder approval for the move was anticipated since Telefonica president Juan Villalonga made the announcement in January. 'Since the announcement of the offers, the revaluation of Telefonica has risen above 25%,' Villalonga said at Friday's meeting. He also noted that shares of the four Latin American companies have skyrocketed 65%.

The amplification of capital will also allow Telefonica to take majority stakes in Argentinean telephone operator Cointel and in Atlantida Comunicaciones, which gives filial Telefonica Media control of television networks Telefe and Canal 9. This action was approved through a strategic alliance formed in January with US-based investment firm Hicks, Muse, Tate & Furst (HMT&F) which, through subsidiary CEI Citicorp Holdings, controlled Cointel as well as Argentinean cable operator Cablevision and content provider Torneos Y Competencias.