stake acquisition in CNC

Telefonica SA
06 September 2005



Telefonica S.A., as provided in article 82 of the Spanish Stock Market Act (Ley
del Mercado de Valores), hereby reports the following



SIGNIFICANT EVENT


In accordance with that stated in the significant event reported by the Company
on June 30th, 2005 (RNS no 28670), yesterday Telefonica, S.A., through its
wholly-owned subsidiary Telefonica Internacional, S.A.U., has  reached a 5%
stake in  the equity of the Chinese telecommunications company China Netcom
Group Corporation (Hong Kong) Limited (CNC). The acquisition of the
aforementioned stake represents a total investment of 418.3 million euros.





Madrid, September 6th, 2005





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