Private equity firms Apax Partners and Bain are the latest companies interested in a bid for Portugal Telecom (PT), according a Financial Times report citing people familiar with the matter.
Earlier this month, TelecomFinance learnt that…
Private equity firms Apax Partners and Bain are the latest companies interested in a bid for Portugal Telecom (PT), according a Financial Times report citing people familiar with the matter.
Earlier this month, TelecomFinance learnt that Luxembourg-based telecoms holding Altice was negotiating the acquisition of the Portuguese incumbent, which is in the process of merging with Brazilian telecoms operator Oi, and had hired Goldman Sachs and Morgan Stanley for advice on a potential bid.
Since then, other companies have reportedly been linked to an offer for PT, including UK-based Vodafone Group and Spain’s Telefonica.
According to the Financial Times report, any bid from a PE firm would require a large amount of equity as well as debt, given the current volatility in Europe’s credit markets.
Apax and Bain declined to comment.
In a recent statement, Oi confirmed that its adviser BTG Pactual has been approached by a number of potential suitors, including Altice.
It also said that, although it will go ahead with the PT merger, it might sell some Portuguese operations and other non-core assets to reduce its R$46.2bn(US$19bn) debt.
The Brazilian telco has already reportedly hired Barclays to dispose of about 3,000 Portuguese mobile phone towers, which could fetch €300m (US$384m).
It is also planning on selling some African operations, part of the Africatel group.
Speculation over a sale of PT has mounted ever since Zeinal Bava, Oi’s CEO, resigned in early October. It is rumoured that with the departure of Bava, who was instrumental in facilitating the Oi-PT merger, the Portuguese operations could more easily be sold.
Offloading assets could give the Brazilian telco additional firepower to conduct a consolidation deal in the country, with its chosen target being Telecom Italia’s TIM Brasil.
