Capital One Investing has announced that it is investing $1.5bn in Spanish telco Telefónica, which has been the target of a spy attack by the US National Security Agency.
The investment comes at a time when Spanish telcos have been under intense scrutiny by the authorities.
According to Spanish media reports, the US government is alleged to have hacked into Telefonica’s network in 2010, spying on its customers and data centres, and then leaking the information.
In January, a former NSA contractor revealed that the agency had stolen personal information from the telecommunications giant, including names, addresses and dates of birth of US citizens.
In an interview with Spain’s El País newspaper, a source said that, when he was at the NSA, he had a conversation with a former colleague who was the top executive at the company.
The source told the newspaper that, at the time, the NSA had also collected information about Spanish citizens in the US.
The company has been in talks with the authorities about the attack, the source said.