PT Shareholder: Telefonica, PT Should Discuss Vivo Bid Further
May 28 2010 - 12:53PM
Dow Jones News
Portugal Telecom (PT) and Telefonica SA (TEF) should discuss
Telefonica's EUR5.7 billion bid for PT's stake in Brazilian cell
phone operator Vivo Participacoes SA (VIV) further, one of PT's top
shareholders said Friday.
Amalia Morris, director for investments at Brandes Investment
Partners L.P., said in an emailed statement that the offer "could
pave the way to a resolution that will be beneficial to both
companies."
Brandes Investment Partners is PT's third-largest shareholder
with a 7.89% stake in the Portuguese telecommunications firm.
Brandes, however, didn't support Telefonica's bid outright.
"While the current offer represents a significant premium to the
market price, it does not reflect the long-term strategic and
operating value of Vivo to Telefonica," Morris said.
Telefonica in its bidding campaign for PT's stake in Vivo
earlier this week said it doesn't rule out a bid for PT itself.
Telefonica, Spain's largest telecommunications company by market
value and customers, already holds a 10% stake in PT.
Portugal Telecom and Telefonica share control of Brasilcel, a
holding company that owns about 60% of Vivo.
-By Bernd Radowitz, Dow Jones Newswires, 34 913958120,
djmadrid@dowjones.com;
(Christopher Bjork contributed to this article)
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