Portugal Telecom rejects proposal from Spain’s Telefónica to buy Brazilian assets

11 May 2010

Lisbon, Portugal, 12 May – Portugal Telecom (PT) has rejected the 5.7 billion-euro offer put forward by Spain’s Telefónica for the acquisition of its 50 percent stake in Brasilcel, the Portuguese carrier said in a statement.

In a statement filed with Portuguese stock market regulator, CMVM, PT said that the offer to buy its stake in Brasilcel, the stockholding company that owns Vivo Participações, was rejected after a meeting of the board of directors.

PT also said that “Vivo is an essential asset for PT’s strategy and the sale of that stake would contradict PT’s long term growth prospects,” thus the board of directors unanimously rejected the offer.

Vivo Participações, which is owned by Portugal Telecom (PT) and Spain’s Telefonica is Brazil’s most important mobile telephone operator in Brazil and South America with over 50 million customers. (macauhub)