SonaeCom bid requires further study

17 May 2006

Portuguese competition watchdog AdC is continuing its investigation into SonaeCom’s proposed EUR11.1 billion takeover of the country’s dominant phone operator Portugal Telecom. The authority said the investigation is being moved to Stage Two, allowing the AdC a further 90 days to analyse the situation. SonaeCom will also have the right to propose solutions for any competition hurdles. The country’s number two cellular operator Vodafone has already complained that the purchase would unite its two rivals, SonaeCom’s Optimus and PT’s TMN, giving market leader TMN almost two-thirds of the overall mobile sector.

Portugal, Optimus (Clix)