Telefonica is selling 8 out of its 10 percent share in the Portugal Telecom (PT) as part of a plan to get the full control of Brazilian operator Vivo. As PT’s major shareholder, the Spanish group won’t be allowed to vote on Vivo’s buy-out offer due to conflict of interest. The hope is that the buyer of Telefonica’s share in the Portuguese company will vote in favor of the deal.
Apparently those 8% in PT are worth around 640 million EUR (about $791 million) and at the moment it’s not clear who could be the interested buyer.
PT’s shareholders should meet next Wednesday to discuss Telefonica’s increased offer of 6.5 billion EUR — up from the initial 5.7 billion EUR. The rumor is that PT would be interested in the deal if Spaniards increase their bid by another 500 million EUR or more. We’ll definitely keep watching how this drama unfolds. Stay tuned…
[Via: MobileBusinessBriefing]