Sonaecom buys 1% of Portugal Telecom to access company data

26 May 2006

Portugese telco Sonaecom said it has bought 11,291,657 shares in Portugal Telecom (PT) over the last few days, representing just over 1% of PT’s capital, at an average price of EUR9.3792 per share, reports AFX. Sonaecom said it bought 1% of PT to obtain the right to information about the company, under article 288 of the Portuguese Companies Code. The fixed line and wireless telecoms provider is awaiting regulatory decisions on its EUR11.1 billion takeover bid for PT. It said it will ‘make some suggestions’ to Portuguese competition watchdog AdC regarding possible solutions to issues raised by the authority about the proposed buy-out.

The country’s number two cellular operator Vodafone has complained that, if Sonaecom purchased the country’s dominant telecoms provider, it would unite its two main rivals, PT’s wireless arm TMN and SonaeCom’s Optimus, giving the combined group almost two-thirds of the overall mobile sector.