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MADRID -- In a surprise bonanza, giant Spanish telco Telefonica has announced that it will give its shareholders nearly half of its 59% stake in commercial broadcaster Antena 3.

The operation is designed as a top-up dividend against its full year results for 2002. It marks one further step in Telefonica's slow but sure withdrawal from the media, and leaves Telefonica with a remaining 29.3% stake in the free-to-air commercial web, clearing the way for the telco to sell on this stake to a new owner.

Companies said to be eying this stake include two Spanish media and publishing congloms, the Planeta Group and Recoletos.

The Bertelsmann-owned RTL Group currently has 17.2% in Antena 3, while Spanish high street bank Santander Central Hispano owns 18.4%. Telefonica will launch an Initial Public Offering of 50 million Antena 3 shares, equivalent to 30% of Antena 3 at a book value of �420 ($451.6 million). Shareholders will receive one Antena 3 share for every 100 held in the telco.

Telefonica's dividend gift confirms its intention to focus its Spanish TV assets in pay TV firm Sogecable. Telefonica took a 23% stake in Sogecable this January as part of the merger of Sogecable and the Telefonica-owned Via Digital.

Sogecable owns premium paybox Canal Plus Espana. Spanish cross-ownership regs prohibit a company from holding stakes in two private TV companies such as Canal Plus Espana and Antena 3.