MADRID, May 14 (Reuters) - Spanish telecoms company

Telefonica's Chief Executive Emilio Gayo said on

Wednesday that his company was satisfied with its Liberty Global ( LBTYA )

tie-up to run Britain's Virgin Media O2 and is not

seeking to take control.

"We're very happy with the current situation. The joint

venture is working very well, we don't have any deal on the

table," Gayo said in a statement after Bloomberg News reported

that the Spanish company was evaluating a potential purchase of

part of Liberty's 50% stake in VMO2.

"We are working closely to find the best option to develop

fibre in the UK and create value for VMO2," he added.

Telefonica has repeatedly said it is reducing exposure to

Spanish-speaking countries in Latin America to focus on Spain,

Brazil, Britain and Germany instead.