Telefónica is considering delaying the planned initial public offering of its Telxius infrastructure unit and the possible IPO of its UK wireless unit O2 because of market volatility after Britain's vote to leave the European Union, according to people with knowledge of the situation.

The stock sale was targeted to raise as much as €1.5 billion, giving the business an equity value of as much as €3.5 billion, they said. Telefónica is weighing options including delaying the marketing of Telxius by one week in the hope markets will stabilise.

Telefónica fell as much as 19 per cent after having its debt-reduction plans roiled by political events for a second time.

Brexit could deteriorate the UK wireless unit's value by 20 per cent and complicate its restructuring, Kepler Cheuvreux said in a note. – (Bloomberg)