Portugal Telecom has rejected a US$7.65bn bid from Telefonica for its 50% stake in Brazilian mobile operator Vivo.
The bid is unsolicited, binding and unconditional and would give Telefonica control of Vivo, via BrasilCel the holding company that…
Portugal Telecom has rejected a US$7.65bn bid from Telefonica for its 50% stake in Brazilian mobile operator Vivo.
The bid is unsolicited, binding and unconditional and would give Telefonica control of Vivo, via BrasilCel the holding company that controls Vivo and is co owned by the two European majors.
Portugal Telecom stated that it had received the bid, but that, “Vivo is core to PT’s strategy and the sale of its stake would be against the long term growth prospects of PT. The Board of Directors has unanimously rejected the offer.”
The offer expires on June 6 and states a deadline of two months, since its acceptance, to complete the acquisition of the shares of BrasilCel, pending regulatory approval in Brazil will be obtained within such a period of time.
Telefonica adds that the offer also includes Telefonica launching a tender offer over the ordinary shares of Vivo which are not already owned by BrasilCel, which currently holds an approximately 60% stake in Vivo. Total price for this is estimated to be E600m.
Portugal Telecom’s board met on May 10, the day the offer was launched, to discuss the offer, which was unanimously rejected.
