UPDATE:Telefonica To Raise Bid For PT's Half Of Brazil Joint Venture
June 01 2010 - 3:01PM
Dow Jones News
Spanish telecommunications giant Telefonica SA (TEF, TEF.MC) is
planning to raise its bid for Portugal Telecom SA's (PT, PTC.LB)
half of the two companies' Brazilian joint venture to between
EUR5.9 billion and EUR6.8 billion, a person close to the situation
said Tuesday.
The person said Telefonica has been in talks with PT and key
shareholders at the company--including Portuguese banks Banco
Espirito Santo SA (BES.LB) and Caixa Geral de Depositos--about a
price that would be agreeable to them.
"They asked us to raise the price," said the person, who
declined to be named.
Telefonica had previously offered EUR5.7 billion for PT's half
of Brasilcel, a holding company that owns about 60% of Brazilian
cell phone operator Vivo Participacoes SA (VIV), an offer which PT
promptly rejected.
The Brazilian venture is considered strategic by both Telefonica
and PT, which face stagnant revenues in mature European markets,
positioning Brazil as their main growth platform.
Brazil had a total of 179 million cellphone subscriptions in
March - equivalent to 93% of the population. That's 17% higher than
the year before.
- By Jason Sinclair, Dow Jones Newswires; +34 628 278 718;
jason.sinclair@dowjones.com
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