Portugal Regulator Asks Telefonica To Clarify PT Bid Comments

Portugal's financial regulator said Wednesday it has requested Spain's Telefonica SA (TEF) clarify comments from its chief financial officer over a potential hostile bid for Portugal Telecom (PT), in which it already has a 10% stake.

The Financial Times quoted Telefonica's CFO Santiago Fernandez Valbuena as saying that the Spanish company doesn't rule out a hostile bid for PT if it can't persuade its Portuguese partner to sell out of their joint venture in Brazil.

"We have never said 'we will never go hostile,'" Valbuena was quoted as saying by the paper.

PT shares rose on takeover speculation, adding 6% to EUR7.79 at 0925 GMT Wednesday, while Lisbon's key IBEX-35 index was 2.9% higher.

The CMVM, as the financial supervisor is also known, said in a statement that it has asked Telefonica to clarify the circumstances which would justify the launch of a bid.

Madrid Bureau; Dow Jones Newswires; djmadrid@dowjones.com; (34) 91 395 8120

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