Telefonica will sell 1.1 billion shares for a total of €1.13 billion ( $1.4 billion ). The transaction, awaiting approval from antitrust regulators, is expected to complete by the end of next month. Following the sale, the company will retain a 5.01% stake in China Unicom. The divestiture is a part of the company's efforts to increase its financial flexibility. Telefonica operates with a high debt level of €57.1 billion as of March 2012 versus €56.3 billion at the end of 2011 and €55.6 billion at the end of 2010. In addition, the company was compelled to plan such a move after an S&P credit rating downgrade last month. The company is also facing the threat of a Moody's downgrade if its debt position does not recover. According to a Bloomberg report, Telefonica's market share has plunged about €50 billion over the last 18 months. Telefonica is underperforming in its home market and woes are getting deeper with the unresolved Euro-zone crisis.