MADRID, June 14 (Reuters) - Spanish telecom company

Telefonica said late on Friday it had reached an

agreement with Luxembourg-based Millicom International

to sell 100% of the shares of its Ecuador unit Otecel S.A. for

380 million dollars.

The transaction aimed to further reduce the Spanish

company's exposure to Latin America, after it recently sold its

businesses in Uruguay, Peru and Argentina to focus on Spain,

Brazil, Britain and Germany.

Telefonica had agreed a month ago to also sell its Uruguayan

unit to Millicom, which operates telecom companies all over

Latin America under the brand Tigo.

The company had to book an accounting loss of 1.7 billion

euros ($1.9 billion) during the last quarter from the disposals

in Peru and Argentina.