Sonaecom looking for alternatives

1 Mar 2007

Reports from Portugal suggest that Sonaecom will consider a merger with the country’s second largest cellular operator Vodafone if it fails with its current takeover bid for Portugal Telecom (PT). Diario Economico claims that Sonaecom is also considering other alternatives, including switching its focus to PT’s cable unit PT Multimedia or its mobile subsidiary TMN. Sonaecom has offered EUR10.50 per share for PT, with the offer closing at the end of next week.

Meanwhile, AFX reports that Sonaecom is prepared to match any dividend package that has been offered by PT to its shareholders as both companies try to win support for their respective strategies. PT shareholders are meeting tomorrow to decide whether to increase the 10% voting rights limit; a decision to keep the limit would mean an end to Sonaecom’s takeover battle. Sonaecom is the sole owner of Portugal’s third largest cellular operator, Optimus.