Telefonica Chairman:No Doubt PT Will Accept Bid For Vivo Stake

Telefonica SA (TEF) is confident Portugal Telecom SA's (PT, PTC.LB) shareholders will approve its improved EUR6.5 billion offer for PT's indirect stake in Brazilian mobile operator Vivo Participacoes SA (VIV).

"We don't have any doubt Portugal Telecom's shareholders will approve the sale," Telefonica Chairman Cesar Alierta said Wednesday during the company's annual shareholder's meeting.

"The offer is impeccable," Alierta said. "Both companies will benefit from the deal."

Late Tuesday, PT said it would call an extraordinary general meeting to allow its shareholders to vote on the offer, but added that the bid didn't fully reflect the strategic value of the asset.

Telefonica had previously offered EUR5.7 billion for PT's half of Brasilcel, a holding company that owns about 60% of Brazilian mobile operator Vivo, which PT rejected.

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

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