Sonaecom studying revised conditions

6 Dec 2006

Sonaecom says it has reached an agreement with regulators over the conditions to be imposed on its proposed EUR13.9 billion takeover of Portugal Telecom (PT) and its cable subsidiary PT Multimedia. A report from AFX, which cites local newspaper Diario Economico, claims that Sonaecom has accepted 27 of the 28 conditions imposed on the deal under the revised conclusions published by competition authority AdC. Sonaecom chairman Paulo Azevedo says the company still has concerns over whether or not to proceed with the deal given the strict conditions called for by the AdC, but he said: ‘at least we have a decision we can submit to the board’. Among the conditions are a requirement to offload mobile spectrum to clear the way for a new licence to be awarded in the wake of a merger between Sonaecom’s Optimus unit and PT’s TMN division. There is also a requirement to spin off either PT’s wireline division or its cable networks. Sonaecom says it expects to launch a formal offer for PT shares on 15 December, with a view to completing the deal next March.

Portugal, Optimus (Clix)