State may up PT stake

11 Nov 2005

The Portuguese government is reportedly considering increasing its stake in the country’s dominant telco to ward off potential takeover bids. The local newspaper Publico says that the state is concerned that the European Commission may rule that the ‘golden share’ it holds in Portugal Telecom is illegal and it is therefore looking at adding to its existing stake. The government currently holds an indirect stake of around 6.8% in the telco, thanks to investments via the state-owned bank Caixa Geral de Depositos and other state-backed financial institutions.