The new episode in the Vivo drama is here. The latest news is – European Union’s Court of Justice ruled that the Portuguese government’s blocking of the deal was illegal. Portugal Telecom’s board had to meet again to discuss Telefonica’s 7.15 billion EUR offer for 50% of Brasilcel (holding company that owns 60% of Vivo), but couldn’t meet the deadline set by the Spanish company. So Telefonica said (I quote): “The deal has been extinguished.”
So what’s the point here? Has Telefonica really dumped the idea of owning the majority of Vivo? Personally I don’t think so. Brazil is an important market for the Spanish group and I’m keen to think they’re trying to lower the bid.
On the other hand, they may have realized they are putting too much money on the table in the times when many companies struggle…
We’ll definitely keep watching how the Vivo drama unfolds and keep you folks in the loop. Stay tuned.
[Via: AP]