Telefonica SA (TEF) said Thursday it could reap roughly EUR2.8 billion in synergies from a potential merger between its Brazilian fixed-line operator Telecomunicacoes de Sao Paulo (TLPP4.BR) and Vivo Participacoes SA (VIV).

In a presentation to investors, Telefonica said it reached the synergy figure based on a consensus of 13 market estimates and on the current value of both companies.

Earlier this week, Telefonica offered EUR5.7 billion to Portugal Telecom SGPS.SA (PT) to gain control of their Brazilian joint-venture, Vivo.

The offer, made Tuesday had a premium of about 150% of Vivo's share price at the time. Portugal Telcom so far has rejected the offer.

Company Web site: www.telefonica.com

-By Jason Sinclair, Dow Jones Newswires, 34 913958127, jason.sinclair@dowjones.com
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