Portugal Telecom's chairman and General Meeting have rejected Telefonica's request to discuss the distribution of an extraordinary dividend if the Portuguese operator's shareholders accept Telefonica's bid for full control of Brazilian mobile operator Vivo. Last week, Telefonica requested that an additional item be included on the agenda of Portugal Telecom's shareholders meeting scheduled for 30 June. Telefonica proposed the reinforcement of PT's current shareholder remuneration policy through the distribution of a supplemental and extraordinary dividend in the amount of EUR 1 per share, or superior, for the financial year 2010. PT said that it rejected the dividend proposal on legal grounds. The chairman of PT's shareholders meeting claims the proposed dividend discussion is conditional on the approval of Telefonica's offer at the same meeting, and that dividend proposals require the ratification of the company's directors and its audit committee, and the review of the company's results. At the shareholders meeting on 30 June, PT shareholders will discuss and vote on Telefonica's revised offer of EUR 6.5 billion for Brazilian joint venture Vivo.
