Portugal govt advises Caixa to veto Telefonica's Vivo bid

News Wireless Brazil 28 JUN 2010
Portugal govt advises Caixa to veto Telefonica's Vivo bid
Portuguese prime minister Jose Socrates has required state bank Caixa Geral de Depositos to reject Telefonica's bid for Portugal Telecom's stake in Vivo, Europa Press reports. "The government has oriented Caixa Geral de Depositos to vote against [Telefonica's bid] at the PT shareholder assembly, that is the government's position," said Socrates. According to the prime minister, "for the government, the strategic interest of the country is for PT to have a large dimension and scale". Caixa currently holds a 7.3 percent stake in Portugal Telecom. Two other PT shareholders, namely Banco Espirito Santo and investment fund Ongoing, have recently announced they will oppose the sale at the 30 June meeting. On 30 June, PT shareholders will discuss and vote on Telefonica's EUR 6.5 billion offer for Brazilian joint venture Vivo.

Categories:

Mobile

Companies:

Telefonica- Movistar,  Portugal Telecom,  Vivo

Countries:

Brazil,  Portugal

Tags:

Voice services, Shareholders & subsidiaries, Wholesale, Government policy, M&A buyouts & divestments

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