Spanish incumbent Telefonica is continuing its quest for control of Brazilian mobile operator Vivo, and is now proposing extra dividends if the shareholders of Portugal Telecom approve the Vivo bid.
Telefonica made a revised E6.5bn bid for the two…
Spanish incumbent Telefonica is continuing its quest for control of Brazilian mobile operator Vivo, and is now proposing extra dividends if the shareholders of Portugal Telecom approve the Vivo bid.
Telefonica made a revised E6.5bn bid for the two telco’s joint Brazilian mobile venture Vivo, a bid which the Portuguese telco is set to discuss at an upcoming June 30 meeting of shareholders. Telefonica also holds some 8.5% of Portugal Telecom’s share capital.
As part of its bid to secure control of the Brazilian mobile operator, Telefonica has now proposed that the Portuguese telco pay a special dividend should its shareholders accept the bid.
The Financial Times has this week reported that Nuno Vasconcellos, CEO of investment group Ongoing that holds a 7% stake in Portugal Telecom, told the newspaper that it would vote against the bid, as it does not reflect the strategic value of Vivo.