Telefónica linked with EUR3b bid for Vivo

10 Jul 2007

Telefónica of Spain is reported to have offered Portugal Telecom (PT) more than EUR3 billion (USD4.08 billion) to buy out its partner’s stake in their Brazilian mobile joint venture, Vivo. According to a report in the Spanish daily Expansion, the firm’s chairman Cesar Alierta has said that if any deal goes ahead, Telefónica is likely to sell the 10% stake it has in PT. Alierta also said he did not rule out the possibility of Telefónica taking control of Italian counterpart Telecom Italia (TI), adding that, if it did, the company would not look to merge Vivo with TI’s Brazilian mobile business TIM Brasil, because the local regulatory authorities would object to such a move. Telefónica has asked PT to respond to the offer by August.

Brazil, Spain, Telefonica, TIM Participacoes (TIM Brasil)