Spain’s Telefonica offers 6.5 billion euros for Portugal Telecom’s stake in Brazil’s Vivo

2 June 2010

Lisbon, Portugal, 2 June – Spanish telecommunications company Telefonica has offered 6.5 billion euros for the 50 percent stake Portugal Telecom owns in Brazil’s Vivo and will sell its stake in the Portuguese operators if the offer is accepted, the Portuguese company said Tuesday.

In a statement filed with Portuguese stock market regulator, CMVM, PT said that as well as the offer to buy its stake in Brasilcel, the stockholding company that owns 60 percent of Vivo Participações, for 6.5 billion euros, the Spanish operator is willing to divest its 10 percent stake in Portugal Telecom.

“Along with the proposal to buy the Brasilcel stake, Telefonica has given PT, if the offer is accepted, the right to acquire by PT or a third party indicated by PT, the entire stake owned by Telefonica in the capital of PT,” the statement said.

Portugal Telecom’s board of directors, which met in an emergency meeting Tuesday, discussed calling a general shareholder meeting to decide if it would or would not sell its stake in Vivo, as the board said it “considers that the offer does not reflect the strategic value of this asset to Telefonica.”

Telefonica increased its offer to acquire Vivo to 6.5 billion euros five days before the deadline of the first offer for 5.7 billion euros, an offer that was immediately rejected by the board of Portugal Telecom. (macauhub)