A significant Portugal Telecom shareholder has supported the company’s decision to reject Telefonica’s US$7.3bn offer for its stake in Brazilian mobile operator Vivo.
PT turned down the offer for its 50% stake in Brasilcel, which owns 60% of Vivo,…
A significant Portugal Telecom shareholder has supported the company’s decision to reject Telefonica’s US$7.3bn offer for its stake in Brazilian mobile operator Vivo.
PT turned down the offer for its 50% stake in Brasilcel, which owns 60% of Vivo, stating that the Brazilian market was integral to its long-term business plan. Telefonica, the owner of the other 50% of Brasilcel, has attempted to stir PT shareholders into opposing the rejection of the deal but Portuguese fund Ongoing, the owner of a 6.7% stake in PT, has come out in defence of the decision.
In a statement the investor said: “Ongoing supports the decision to reject the sale of Vivo. We bet on a strategic project that has a big focus on the Portuguese language and the Brazilian market in particular, on its growth potential.”
Meanwhile, Portuguese Prime Minister Jose Socrates has also hinted that PT should hang onto its stake in Vivo in order to maintain the company’s international footprint.
Some bankers have been sceptical of PT’s decision to reject Telefonica’s bid, which is considered to be a handsome one. The Spanish firm has made no indication as to whether or not it will increase its original offer, which is valid until June 6.
