Telefonica gives up on PT's Vivo stake
Monday, 19 July 2010
MADRID, July 18 (Reuters): Spain's Telefonica dropped its offer for Portugal Telecom's stake in Brazilian cellphone company Vivo Saturday, declining a request for more time from its Portuguese partner and setting the stage for a legal battle over Vivo's future.
The Portuguese carrier asked for more time to cement a deal, but Telefonica had clearly lost patience after PT's shareholders voted in favor of the 7.15 billion euro ($9.25 billion) bid for Vivo last month but that move was then overruled by the Portuguese government.
"Telefonica announces that after Portugal Telecom's board did not accept the offer within the agreed time the offer has been dropped," Telefonica said in a statement.
The refusal to give PT more time could mean Telefonica aims to buy the free-floating shares in Vivo on the Brazil bourse, but it will first have to seek legal arbitration to dissolve Brasilcel, the company through which it and PT own 60 per cent of Vivo VIV04.SA, analysts said.
The Portuguese carrier asked for more time to cement a deal, but Telefonica had clearly lost patience after PT's shareholders voted in favor of the 7.15 billion euro ($9.25 billion) bid for Vivo last month but that move was then overruled by the Portuguese government.
"Telefonica announces that after Portugal Telecom's board did not accept the offer within the agreed time the offer has been dropped," Telefonica said in a statement.
The refusal to give PT more time could mean Telefonica aims to buy the free-floating shares in Vivo on the Brazil bourse, but it will first have to seek legal arbitration to dissolve Brasilcel, the company through which it and PT own 60 per cent of Vivo VIV04.SA, analysts said.