Portugal PM: Telefonica's Bid Was Not In PT's Interest
June 30 2010 - 9:34AM
Dow Jones News
Portuguese Prime Minister Jose Socrates said Wednesday that his
government's veto of an EUR7.15 billion bid from Telefonica SA
(TEF) to buy Portugal Telecom SGPS S/A's (PT) stake in Brazil's
Vivo Participacioes SA (VIV) was made to protect the interest of
the country.
"The offer was not in the interest of PT," Socrates told
Portuguese television. "The government is protecting the interests
of the country."
The Portuguese government Wednesday vetoed the bid from
Telefonica despite the approval of a majority of PT shareholders
for the transaction.
The veto through the use of so-called golden shares comes after
Socrates said in parliament last week Portugal's strategic interest
was linked to the dimension and scale of PT.
PT and Telefonica have been locked in a power struggle over
Vivo, which the two Iberian telecoms control through a 50-50 joint
venture in the investment vehicle Brasilcel, which in turn owns 60%
of the Brazilian mobile phone company.
Both companies consider Vivo as key to their future growth
prospects.
-Contributed by Webtexto to Dow Jones Newswires; +34-91-395
8120; djmadrid@dowjones.com
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