Telefonica considers making takeover bid for Vodafone Spain, El Confidencial reports

MADRID (Reuters) -Telefonica is considering making a takeover bid for Vodafone Spain, which was bought last year by London-based Zegona, news website El Confidencial reported on Tuesday, citing unidentified sources.

Spanish government fund SEPI, holding company CriteriaCaixa and Saudi telecoms company STC, which together own almost 30% of Telefonica, support the plan, El Confidencial said.

Telefonica, Vodafone Spain, CriteriaCaixa, STC and SEPI declined to comment.

Marc Murtra, who was appointed as Telefonica chief executive in January, plans to complete a strategic review of the company by the end of the year and has called for consolidation of the European telecoms sector.

Telefonica's new strategy will include a capital increase, the Vozpopuli website reported last week.

(Reporting by Inti Landauro and Jesus AguadoEditing by David Goodman)