According to Palm Info Center Numerous Spanish media outlets are reporting today that Telefónica's Movistar will exclusively offer the Palm Pre in Spain, UK and Latin America. The Spanish newspaper Expansion reports (Translated) that Telefónica will offer the Pre in Spain "before summer."

More interestingly the paper also reports that Telefónica's subsidiary brand O2, will exclusively market the Pre in the UK, beating out its rival Vodafone.

This would seem like a bit of a drastic move on O2s behalf as they will have invested a large amount of money to secure the Palm contract only to have it compete with its golden boy the iPhone. However I guess if they feel the Palm Pre is good enough that people will ditch O2 then I guess it would be worth it.

I’m still betting that it will be Vodafone that wins the contract.

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