One of the world's largest telecommunications company, Telefonica, recently denied reports of American company AT&T's reported bid worth Eur70 billion ($93 billion). The rumor sparked from a Spanish newspaper's article confirming the alleged bid.

The newspaper, El Mundo, reported earlier that an AT&T representative told the government about its proposal to acquire Telefonica and assume responsibility of the Spanish company's Eur52 billion debt. The report was published on Monday, which caused the government to initiate a halt on the supposed deal.

El Mundo further reported that "the government has mechanisms to block the sale of any company deemed strategic to the national economy," citing anonymous sources knowledgeable of the alleged buyout.

"Telefonica has not received any approach or spoken or written indication of interest," a Telefonica spokesperson told Reuters today.

If the acquisition commences, it would create the world's biggest telecom company, with market capitalization amount Eur300 billion, said El Mundo.