Telefonica has shelved plans for a stock market flotation of its Latin American businesses, multiple news wires have announced.

The sale, which had been expected to raise upwards of EUR6 billion (US$8 billion) for the heavily indebted company has been postponed due to a lowering of the pressure on the company to pay down its debt.

According to company sources cited by Bloomberg there was a possible lack of investor appetite for the floatation.

It had been previously reported that the company may fold the Latin American assets into a new Spanish holding company, and that it would then be listed on the New York stock market, with Telefonica (TEF) retaining the majority stake.

The company has a debt of around EUR50 billion and saw its debt ratings cut last year as ratings agencies worried about the ability of the company to maintain its creditworthiness. Since then a sale of a stake in its German operations and improved performance in Latin America has lifted the financial pressure somewhat.

Get access to Telefonica executives across Latin America with Latin Target.

What is Latin Target? Find out at www.latintarget.com