Portugal Telecom’s market capitalization reaches 10.6 billion euros

16 June 2006

Lisbon, Portugal, 16 June – The listed stock market value of Portugal Telecom rose to 10.6 billion euros, boosting the company’s status as the most valuable company on the Portuguese market, in the first half of 2006.

According to calculations made by Portuguese financial daily Diário Económico, the telecommunications operator, which is currently the target of a takeover bid launched by Portuguese group Sonae, has moved away from the two other large companies listed on the stock exchange, electricity company EDP, and bank Millennium BCP, Portugal’s largest private bank.

The bank’s stock price has been affected by the launch of a takeover bid for rival bank, BPI, the third-largest Portuguese bank, which is valued at over 4 billion euros, which will force Millennium into a capital incraese.

Millennium BCP and EDP at the end of the day Wednesday on Euronext Lisboa less than 10 billion euros each, significantly less than they were worth at the beginning of the year, with their stock affected by a slowdown of the Portuguese market, and more generally European markets.

At the end of the day Thursday, Portugal Telecom’s 1.13 billion shares were worth a total of 10.6 billion euros, according to Diário Económico.

Portugal telecom’s profit rose 4.9 percent last year, against 2004, to 654 million euros, a record for the company.

Currently, Portugal Telecom has stakes in the fixed and mobile telecoms markets in Sao Tome, Macau, Kenya, Mozambique, Botswana and Angola, via Unitel, a company in which it has a 25 percent stake.

With Unitel, Portugal Telecom recently acquired 51 percent of the company holding the GSM 900 to 1800 MHz license from Zimbabwe’s Cellco, which is due to start operating in the second half of this year.

The company is also working on entering the Namibian market and also, with Unitel, the Democratic Republic of the Congo. (macauhub)