A consensus of analysts say that a possible bid by Portugal Telecom (PT) for Brazil’s largest telecoms operator Telemar is unlikely in the short term, as it would hit too many regulatory obstacles. However, there is broad agreement that the operator will remain an acquisition target. Telemar shares rose 12% yesterday morning on the back of speculation of an imminent offer from the Portuguese operator, but fell back as problems facing such a move became apparent. The main stumbling block is that PT is itself facing a hostile takeover bid by Portuguese conglomerate Sonae, and Portugal’s securities law prevents it from making major acquisitions while the process is underway. The Sonae bid is unlikely to be completed before September, and could be further extended if new proposals emerge.