Telefonica Considering Raising Bid For PT Stake In Brazil's Vivo
June 29 2010 - 9:54AM
Dow Jones News
Spain's Telefonica (TEF, TEF.MC) is considering raising its
offer for the stake held by Portugal Telecom SGPS S/A (PT, PTC.LB)
in Brazilian mobile market leader Vivo Participacioes SA (VIV,
VIVO4.BR) to improve the chances of success in a key shareholders
vote on Wednesday, local daily Folha de S. Paulo reported
Tuesday.
Shareholders in PT will vote on the EUR6.5 billion offer for its
stake in the Brazilian joint venture with Telefonica, but senior PT
executives have recommended that they reject the offer.
Last month, the PT board rejected a EUR5.7 billion offer for the
asset. After equity swap maneuvers to increase Telefonica's voting
power at the PT shareholder meeting failed, the Spanish company
sees that it must raise its offer to avoid another rebuttal,
according to the report, which did not name its sources.
A Telefonica spokesman would not immediately comment on the
report.
Both companies view their Brazilian investment as key to their
future growth prospects.
-By Alastair Stewart; Dow Jones Newswires; 5511 3544-7072;
alastair.stewart@dowjones.com
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