Telefonica boosts bid for PT's Vivo stake to EUR 7.15 bln

News Wireless Brazil 30 JUN 2010
Telefonica boosts bid for PT's Vivo stake to EUR 7.15 bln
Telefonica has again increased its offer for Portugal Telecom's stake in Brazilian operator Vivo, hours before PT shareholders are expected to vote on the deal. Telefonica has now boosted its previous EUR 6.5 billion offer by 10 percent. The new consideration amounts to EUR 7.15 billion and is valid until 2 July. All the other terms and conditions of the previous offer launched on 1 June remain the same. The revamped offer will be submitted to PT shareholders at the general shareholders meeting on 30 June. Telefonica had already increased its initial EUR 5.7 billion offer by 14 percent to 6.5 billion on 1 June to gain support from PT shareholders. PT's board unanimously rejected Telefonica's previous offers, claiming that the bids did not reflect the strategic value of the asset for Telefonica.

Categories:

Mobile

Companies:

Telefonica- Movistar,  Portugal Telecom,  Vivo

Countries:

Brazil,  Portugal

Tags:

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

Related Articles

BRAZIL 28 JUL 2010

PT to sell Vivo to Telefonica, buy stake in Oi

Portugal Telecom has agreed to sell its 50 percent stake in Brasilcel, the company that controls 60 percent of Brazilian mobile operator Vivo, to Telefonica, giving the Spanish operator full control of the company. Telefonica will pay EUR 7.5 billion for PT's stake, better than its last offer of EUR 7.15 billion which was vetoed by the Portuguese government. PT will receive EUR 4.5 billion at closing, expected within 60 days, EUR 1 billion on 30 December 2010, and EUR 2 billion no later than 31 October 2011

BRAZIL 28 JUL 2010

Telefonica buys PT's Vivo stake for EUR 7.5 bln – report

Telefonica has reached an agreement with Portugal Telecom to buy its 50 percent stake in Brasilcel, the company that controls Brazilian mobile operator Vivo, for EUR 7.5 billion, El Pais reports, citing sources familiar with the negotiations. According to the same sources, the agreement has the approval of the Portuguese government led by prime minster Jose Socrates. Portugal Telecom plans to use half of the EUR 7.5 billion amount to acquire a 20-25 percent stake in Brazilian operator Oi. Both transactions

PORTUGAL 8 JUL 2010

EU court rules govt's golden shares in PT illegal

The EU Court of Justice has ruled that the Portuguese government's 'golden' shares in Portugal Telecom are an unjustified restriction on the free movement of capital. The court said the golden shares grant the Portuguese state a disproportionate influence over decision-making in the company, which is liable to discourage investments from operators in other EU member states. The golden shares give the state a veto right over amendments to the company's articles of association and other important decisions. T

BRAZIL 8 JUL 2010

Telefonica, PT to start Vivo stake sale negotiations

Telefonica has opened the door to negotiations on its dispute with Portugal Telecom over control of Vivo. Telefonica said it "is willing to continue to look for possible solutions to take this operation to a good ending, as long as there is equal availability from Portugal Telecom to this effect, in a way in which both parties feel comfortable". In response, Portugal Telecom says it is available to maintain a dialogue with Telefonica aimed at analysing options that optimise the advantages for all parties. T

SPAIN 6 JUL 2010

Telefonica in talks for EUR 8 bln loan – report

Telefonica has received a EUR 8 billion loan financing offer from 20 banks, to back its offer for Portugal Telecom's stake in Brazilian operator Vivo, and refinance existing debt. Of the overall loan amount, Telefonica would use around EUR 5 billion to finance the EUR 7.15 billion bid for Vivo, Cinco Dias reports, citing unnamed sources. The remaining EUR 3 billion would be used to refinance Telefonica's debt that matures in the short-term.

BRAZIL 1 JUL 2010

Portugal govt's golden share use illegal – Telefonica

Telefonica considers the Portuguese government's use of its golden share to ban the sale of Portugal Telecom's stake in Vivo was illegal. At the extraordinary general meeting of Portugal Telecom shareholders on 30 June, over 73.9 percent of the submitted votes were in favour or Telefonica's sweetened bid of EUR 7.15 billion. However, the sale was vetoed by the Portuguese government, invoking its rights under the so-called golden share. Telefonica believes that the veto under the golden share is illegal, as

BRAZIL 30 JUN 2010

Portugal govt blocks Vivo sale to Telefonica

The Portuguese government has used its golden shares in Portugal Telecom to block the proposed sale of the company's stake in Brazilian mobile operator Vivo to Telefonica. While a majority of the other shareholders at the extraordinary meeting voted in favour of accepting Telefonica's sweetened bid of EUR 7.15 billion, the state used its 500 class A shares with special voting rights to block the deal. Holders of just under 70 percent of PT's shares voted at the meeting, with 73.9 percent of those approving

PORTUGAL 30 JUN 2010

PT blocks Telefonica's voting rights at shareholders meeting

Portugal Telecom has blocked Telefonica's voting rights at the extraordinary general shareholders meeting today, citing a conflict of interest. Shareholders were called to vote on Telefonica's EUR 7.15 billion offer for PT's indirect stake in Brazil's Vivo. PT has blocked voting rights attached to Telefonica's 2 percent stake in PT, Dow Jones reports, citing a Telefonica official and another person close to the situation. The Portuguese company has also blocked voting rights attached to the 8 percent PT sta

PORTUGAL 29 JUN 2010

Watchdog says Telefonica still controls 8% PT stake

Portuguese stock market regulator CMVM (Comissao do Mercado de Valores Mobiliarios) has ruled that Telefonica still controls the voting rights of the Portugal Telecom shares it sold last week to undisclosed buyers. On 24 June, Telefonica announced it had sold the shares through so-called equity swaps. CMVM says the eight percent PT stake that Telefonica had sold still belongs to the Spanish company for the purposes of the PT shareholder assembly scheduled for 30 June. On 30 June, PT shareholders will discus

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

BRAZIL 15 JUN 2010

PT investor Ongoing to veto Vivo stake sale

Portuguese investment fund Ongoing Strategy Investments, a Portugal Telecom shareholder, plans to vote against selling the company's stake in Brazilian mobile operator Vivo. PT shareholders will discuss Telefonica's revised offer of EUR 6.5 billion for Vivo at a meeting scheduled for 30 June. "At this price my answer is clearly no", Ongoing chairman Nuno Vasconcellos told Bloomberg. The offer "doesn't reflect Vivo's strategic value or the benefits Telefonica could get from merging a mobile business with Tel

BRAZIL 9 JUN 2010

Telefonica's upgraded Vivo bid still low – PT CEO

Telefonica's revised offer for Portugal Telecom's stake in Brazilian mobile operator Vivo is still insufficient, Dow Jones reports, citing Portugal Telecom CEO Zeinal Bava. "The offer does not reflect the strategic value of this asset for Telefonica," Bava said. Telefonica recently increased its offer for Portugal Telecom's stake in Vivo by 14 percent to EUR 6.5 billion, versus the initial offer of EUR 5.7 billion. PT shareholders will discuss Telefonica's revised offer for Vivo at a meeting scheduled for 3

BRAZIL 7 JUN 2010

PT to decide on Telefonica's Vivo revised offer on 30 June

Portugal Telecom has called a shareholders' meeting to discuss Telefonica's revised offer for Brazilian mobile operator Vivo. Telefonica recently increased its bid for Portugal Telecom's stake in Vivo by 14 percent to EUR 6.5 billion, versus the initial offer of EUR 5.7 billion. Telefonica has also offered to sell its 10 percent stake in Portugal Telecom, if the Portuguese operator agrees to sell out of Vivo.

BRAZIL 2 JUN 2010

Telefonica ups bid for Vivo stake to EUR 6.5 bln, PT rejects

Telefonica has increased its bid for Portugal Telecom's stake in Vivo by 14 percent to EUR 6.5 billion. Telefonica's initial offer of EUR 5.7 billion for PT's 50 stake in Brasilcel, the holding company of Vivo, was rejected by the Portugal Telecom board in May. Vivo is a joint venture between Portugal Telecom and Telefonica. Telefonica's new offer also includes two alternatives, one for the immediate sale of PT's entire Vivo stake and another to be executed at PT's discretion during a three-year period. Ad

Just In

15:08

Dialog Axiata to offer Starlink satellite service across Sri Lanka

14:51

Sri Lanka raises LKR 10 billion in 5G spectrum auction

14:00

Vi introduces Niyo Zero Forex Markup Card for travelers

13:39

True reshuffles executive team

Commentary

13:56

Video market set for slower growth ahead

11:38

Netflix buys Warner Bros to deepen content catalogue

11:11

KPN's mixed performance in Q3 raises questions for strategy day

15:26

Stock markets breaking records but what happened to Odido's IPO plans?

Background

01:04

The week in telecom: Wi-Fi bolt-ons take off to boost broadband growth, video market works on consolidation

01:39

The week in telecom: Netflix wins bidding for Warner Bros, Apple poaches new execs, Samsung debuts trifold

13:51

Proximus vs. Telenet: Proximus performs better in Q3 while Telenet uses up cash

14:16

Proximus Domestic still struggling with low margins

Complete profile

Before downloading the whitepaper, we would like to ask you to complete your profile with company and position. After confirming you will receive the white paper.