Several large buy-out groups are working on a potential USD13 billion bid for Portugal Telecom, according to the Financial Times. Apollo Management, Blackstone, Kohlberg Kravis Roberts, and Permira are reported to be working together, while Apax, Carlyle, Cinven and Providence are also interested in the Lisbon-based telco. However, the private equity houses are yet to form a solid consortium and partnering arrangements remain fluid, according to sources close to the situation. The Portugese incumbent is currently the subject of a hostile bid from domestic conglomerate Sonae. In January, a consortium comprising Apax, Blackstone, Kohlberg Kravis Roberts, Permira and Providence acquired Danish telecoms group TDC.