Portugal Telecom Chairman:Respects Government Decision On Golden Share

Portugal Telecom SGPS SA (PT) will respect the government's decision to invoke its golden share to block a EUR7.15 billion purchase of the company's stake in Vivo Participacoes SA (VIV) by Telefonica SA (TEF), PT Chairman Henrique Granadeiro said Wednesday.

Granadeiro said PT had previously said it didn't think the golden share, designed to prevent a hostile takeover, could be used in this way.

"The board has repeatedly said that it was convinced the golden share wasn't applicable in this situation," Granadeiro told journalists after an extraordinary meeting, in which PT shareholders voted to accept Telefonica's bid for PT's stake in Vivo but the government vetoed the deal.

The veto comes just before the European Court of Justice is expected to rule next week on the legality of Portugal's golden share in PT.

-By Jeffrey T. Lewis, contributing To Dow Jones Newswires; +34 91 395 8120; djmadrid@dowjones.com

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