Battle scars

28 July 2010 By Fiona Maharg-Bravo

Portugal Telecom has surrendered to Telefónica in the battle over their Brazilian mobile JV, after the Spanish telco upped its offer to 7.5 bln euros. Telefónica gets its way while PT is well paid for making a strategic retreat. The clear winners are PT’s shareholders.

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Portugal Telecom has reached a preliminary agreement to sell its stake in Brazilian mobile operator Vivo to Telefónica after the Spanish telecom company raised the offer to 7.5 billion euros.

The deal came after Telefónica offered 350 million euros more than the price accepted by PT shareholders in a shareholders' meeting last month. The Portuguese government used its golden share to overrule the shareholder vote.

Meanwhile, PT could use approximately half of the proceeds to take a stake of approximately 22 percent in Oi, a Brazilian telecom company.

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