Telefonica: Should Let PT Shareholders Vote On Vivo Offer
May 13 2010 - 11:31AM
Dow Jones News
Telefonica SA (TEF) said Thursday Portugal Telecom SGPS SA's
(PT) shareholders should be allowed to vote on a EUR5.7 million
offer Telefonica made for PT's stake in Vivo Participacoes SA
(VIV).
In a conference call with investors after the company's
first-quarter results, Telefonica Chief Financial Officer Santiago
Fernandez Valbuena said PT shareholders should be allowed to vote
on the offer Telefonica made Tuesday, which had a premium of about
150% of Vivo's share price at the time.
Portugal Telecom so far has rejected the offer.
In a presentation, Telefonica said it could reap roughly EUR2.8
billion in synergies from a potential merger between its Brazilian
fixed-line operator Telecomunicacoes de Sao Paulo (TLPP4.BR) and
Vivo.
Currently, PT and Telefonica control Vivo through a joint
venture.
"[Rejecting the offer] should raise concern about the corporate
governance at Portugal Telecom and the company's past reputation as
one that looks out for the best interest of shareholders," Valbuena
said.
Company website: www.telefonica.com
-By Jason Sinclair, Dow Jones Newswires; 34 913958127;
jason.sinclair@dowjones.com
Telefonica Brasil (NYSE:VIV)
Historical Stock Chart
From Apr 2024 to May 2024
Telefonica Brasil (NYSE:VIV)
Historical Stock Chart
From May 2023 to May 2024