We’ve already talked about Telefonica-Portugal Telecom (PT) drama, as the Spanish group tries to consolidate its operations in Brazil with the idea to more closely integrate mobile operator Vivo with the underperforming Brazilian fixed-line arm Telesp.
As you know, PT refused Spanish offer and now we have Telefonica saying they may consider hostile takeover bid. “It [a hostile takeover bid] could always be revisited… We have never said ‘we will never go hostile’,” Santiago Fernandez Valbuena, Telefonica’s finance director, told the Financial Times.
Previously, Telefonica offered 5.7 billion EUR ($7.65 billion) for PT’s 50% shareholding in Brasilcel (owner of Vivo), which is a 109% premium to the stake’s fair value, according to Bernstein analysts. The word is this could end if Telefonica raises its offer by another billion or so. Telefonica now seems to be thinking that a hostile takeover could work just as well, without having to raise the bid.
We’ll definitely keep watching the Latin American mobile space and keep you folks in the loop. Stay tuned…
[Via: MobileBusinessBriefing]