Spanish incumbent Telefonica has sold an 8% stake in Portugal Telecom, as part of its move to secure control of their Brazilian mobile JV Vivo. The identity of the buyer, which reportedly paid some E640m via equity swaps for the stake, remains…
Spanish incumbent Telefonica has sold an 8% stake in Portugal Telecom, as part of its move to secure control of their Brazilian mobile JV Vivo. The identity of the buyer, which reportedly paid some E640m via equity swaps for the stake, remains unclear.
The market believes that Telefonica will expect the buyer to back its own E6.5bn offer for PT’s stake in Vivo.
Portugal Telecom CEO Zeinal Bava has been cited by the Financial Times questioning the deal, which he did not see as an “effective sale” that included voting rights.
Portuguese stock market regulator CMVM reportedly said it would examine whether the transaction would include voting rights.
Portugal Telecom shareholders are to vote on the bid at an EGM on June 30. The company has urged them to vote against the offer, and refused to allow a vote on Telefonica’s proposed dividend to Portugal Telecom shareholders.
At a presentation earlier this month, Bava said that the EGM chairman would decide whether or not to allow Telefonica to vote. The vote will be decided by a simple majority (50% of those present), without invoking the golden share, he said.
Telefonica, which is clearly hoping to participate in the vote, now holds a 2% stake in PT.
Telefonica is being advised by UBS and Credit Suisse, while Portugal Telecom is advised by BoA Merrill Lynch.