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The drama surrounding Telefonica’s bid for Brazil’s Vivo is coming to an end. After selling an 8% stake in Portugal Telecom, leaving the Spanish group with only 2% share, Telefonica additionally increased its bid by 10% to 7.15 billion EUR (up from 6.5 billion) for PT’s 50% stake in Brasilcel, a holding company with a controlling 60% stake in Vivo. And… PT’s shareholders voted in favor of the deal, but… (there’s always some “but”), the government of Portugal used its so-called “golden share” to stop the deal.
Now it’s the European Court of Justice turn to say whether using this instrument by the Portuguese government is lawful under EU rules on the free movement of capital within the bloc. Investors are waiting for a July 8th ruling when we’ll know the “destiny” of the leading mobile operator in Brazil.
As you know from our previous posts, Telefonica’s goal is to more closely integrate Vivo with its underperforming Brazilian fixed-line arm, Telesp, and eventually get a dominating position the ever growing mobile market of Brazil.
[Via: MobileBusinessBriefing]
About The Author
Dusan Belic
Dusan has been using smartphones since their introduction and is now following the latest trends in the industry. The "convergence" is what he's most excited about, and writing about it is the next logical thing to do. He thinks that using a smartphone is what everyone who cares about their time should do. In addition to his interests in mobile phones, Dusan also loves to experiment with the latest web and mobile 2.0 services. The idea of accessing and managing your information from any device no matter where you are simply amazes him. Whether it's an online to-do list, note taking service or a video sharing social network, he's there to try it out. He admits though, he's still searching for the ultimate web-based organizational tool, which "sings" perfectly with the mobile PIM application. Dusan used to run SymbianWatch.com which later became part of IntoMobile. He lives in Serbia, South-East Europe, from where he edits the site on a daily basis.
