Spanish incumbent Telefonica is looking to secure a E8bn loan to finance the buyout of the remainder of its Brazilian JV Vivo from Portugal Telecom, reports Dow Jones. Citing a person familiar with the situation, the newswire said the operator had asked…
Spanish incumbent Telefonica is looking to secure a E8bn loan to finance the buyout of the remainder of its Brazilian JV Vivo from Portugal Telecom, reports Dow Jones. Citing a person familiar with the situation, the newswire said the operator had asked some 20 banks to provide E5bn to fund the new E7.15bn offer price and another E3bn to refinance some existing debt.
The Telefonica press office did not answer calls for comment, although Dow Jones indicated that a press representative had said a number of banks had approached the company to offer financing.
After Telefonica upped its offer price the first time, from E5.7bn to E6.5bn, a source had told TelecomFinance that Telefonica would finance its bid with existing cash and undrawn credit facilities.
The Spanish operator, whose offer to buy Portugal Telecom was last week vetoed by the Portuguese government, is waiting to hear the outcome of a European Court of Justice ruling on the legality of golden shares. The ruling is due on July 8, with Telefonica’s offer terminating on July 16. Portuguese legal sources have been cited saying that the Portuguese operator’s board could circumvent the government’s veto if Telefonica again raises its offer.
