PT looking to sell Vivo stake

24 May 2005

Portugal Telecom (PT) has said it may sell its stake in its Brazilian joint venture with Telefónica, Brasilcel (Vivo), in order to buy other fixed and mobile operators in the country, such as Telemar and Brasil Telecom. PT is reported to be interested in new investments in Brazil, and its stake in Vivo creates a regulatory obstacle to doing so; its partner Telefónica controls incumbent mobile operator Telesp, and is not allowed to take control of any other incumbent operator. If the move goes ahead, PT’s stake is likely to be transferred outright to Telefónica, leaving PT free to acquire other players. The plans follow the appointment of two new executives at Vivo over the weekend.

Brazil, Telefonica