Sonaecom’s PT takeover bid fails

5 Mar 2007

Sonaecom has failed in its EUR11.9 billion (USD15.7 billion) bid to take control of larger rival Portugal Telecom (PT). PT shareholders voted on Friday to retain a 10% voting rights limit, thus putting an end to Sonaecom’s year-long takeover challenge. The firm had secured the backing of 43.9% of PT’s shareholders but needed at least 50.01% for the bid to proceed. 46.58% of shareholders voted against the takeover, while 9.52% abstained. Sonaecom initially offered EUR9.50 per share for PT but raised its offer to EUR10.50 last month; PT urged its shareholders to reject both offers, saying they undervalued the company. Sonaecom is now barred from launching another bid for PT for at least twelve months under stock market rules. Its share price dropped by as much as 19% when trading resumed this morning, Bloomberg reports.

Portugal, Optimus (Clix)