Portugal Government Backs Portugal Telecom's Decision Over Vivo

The board of Portugal Telecom SGPS SA (PT, PTC.LB) has the "full support" of the Portuguese government after it let the offer for the company's stake in Vivo Participacoes SA (VIV, VIVO4.BR) expire Friday, the Ministry of Public Works said.

"The Portuguese company always acted safeguarding the interests of all of the parties involved and promoting the strategic importance of Portugal Telecom as a large international company," the Public Works ministry said in a statement late Saturday.

Earlier Saturday, Portugal Telecom let Telefonica SA's (TEF, TEF.MC) EUR7.15 billion offer for PT's stake in Vivo expire and Telefonica refused to extend the offer period.

PT and Telefonica have been locked for months in a power struggle over Vivo, which they control through Brasilcel, a joint venture that owns 60% of the company.

-By Jason Sinclair, Dow Jones Newswires, +34-91-395-8127, jason.sinclair@dowjones.com

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