Sonaecom given go-ahead to launch takeover bid for Portugal Telecom

28 September 2006

Lisbon, Portugal, 28 Sept – The Portuguese Competition Authority authorized the takeover bid launched by Sonaecom on Portugal Telecom (PT), but imposed conditions for it to go ahead, officials said in Lisbon.

Therefore, if Sonaecom should decide to move ahead with the bid for PT it will have to sell one of the two networks it will own, wither the copper or cable distribution network, within a deadline set by the Competition Authority, but which has not been made public as it was considered confidential information by Sonaecom.

The Competition Authority accepted the merger of the two mobile operators, Optimus and TMN, but imposed that it be made possible for a new mobile operator to appear.

Sonaecom was set up in 1994, six years before Portugal Telecom’s fixed line monopoly came to an end, in order to be the company within Belmiro de Azevedo’s group for telecommunications, media and information systems.

Currently, Sonaecome acts in three main business areas – telecommunications (Optimus, Novis and Clix), media (Público newspaper) and software and information systems (WeDo, Bizdirect and Mainroad).

The costs of the bid, for 100 percent of PT’s capital, total 10.7 billion euros.

Portugal Telecom is Portugal’s largest company and provides services to a total fo 40 million customers all over the world, including Brazil, a market where it is present via Brazilian mobile operator Vivo, which is the result of a joint venture with Spain’s Telefonica.

The compare provides services in the entire telecommunications market: fixed line, mobile, cable television and broadband Internet access via copper or cable networks.

PT was set up in 1994 following the merger of sector companies held by state company Comunicações Nacionais (CN) – Telecom Portugal, TLP – Telefones de Lisboa e Porto and TDP – Teledifusão de Portugal. (macauhub)