Saudi Arabia's leading telecommunications company, STC, has solidified its position as a major shareholder in Spain's Telefónica. In a filing with the U.S. Securities and Exchange Commission (SEC), STC announced plans to convert existing financial derivatives representing a 5% stake in Telefónica into direct shares.

This move will increase STC's effective ownership of Telefónica to a substantial 9.97%. With this larger stake, STC is poised to become a more influential player in the Spanish telecommunications giant. To further solidify its involvement, STC has also indicated its intention to seek a seat on Telefónica's board of directors.

The acquisition of this additional stake marks a significant development in the relationship between the two telecommunications giants. As STC strengthens its position within Telefónica, industry analysts will be closely watching to see how this increased ownership will shape the strategic direction of both companies.