MADRID, Nov 29 (Reuters) - Telefonica's sale of

stakes in its fibre optic network in Peru to private equity fund

KKR and Chilean telecom firm Entel announced

in July 2023 fell through, Entel said in a filing to the

regulator on Thursday.

Telefonica said it is maintaining talks with Entel and KKR,

in a separate filing to the Peruvian stock market regulator.

The deal was announced in July 2023 when Telefonica said it

had agreed to sell a 54% stake in its fibre network to KKR and a

10% stake to Entel.

The Chilean company said the deal fell through "due to the

breach of certain closing conditions" it did not specify.

Over the past few years, Telefonica has carried out a series

of asset sales to reduce debt and to help fund the hefty

investment required to build 5G mobile networks.

Telefonica did not disclose the value of the transaction but

said the deal would cut its debt by 200 million euros ($217.8

million).

The transaction valued 100% of the network at about 550

million euros, including debt, according to a banking source

close to the deal.