PT set to reject revised offer

20 Feb 2007

Reports from Portugal suggest that Portugal Telecom (PT) is set to reject the improved takeover offer from rival operator Sonaecom. Diario de Noticias writes that the PT board will reject the EUR10.50 per share offer not only on the grounds that it still undervalues the company, but also because of failings in Sonaecom’s proposed business strategy for the PT group.

Meanwhile, Portugal’s stock market regulator CMVM has revealed that if PT shareholders vote to keep the current 10% cap on voting rights at their planned EGM on 2 March then Sonaecom would be blocked from mounting a fresh takeover bid for at least twelve months. AFX reports that Sonaecom’s existing bid will go ahead if shareholders elect to raise the ceiling.

Portugal, Optimus (Clix)