Telefonica Considering Raising Bid For PT Stake In Brazil's Vivo

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

Telefonica Brasil (NYSE:VIV)
Historical Stock Chart
From Apr 2024 to May 2024