Vivo confirms Telemig, Tele Norte bid, but no deal as yet

30 Jul 2007

Vivo Participações, the Brazilian mobile joint venture of Telefónica and Portugal Telecom, has confirmed it has made an offer for rival mobile operators Telemig Celular and Tele Norte Celular Participações (Amazônia Celular), but said that no deal has been completed. The Gazeta Mercantil newspaper earlier confirmed that the two European telcos were looking to acquire the Brazilian sister companies for about BRL3.5 billion (USD1.8 billion). Last Friday, Telemig Celular denied a press report that its owners had sold the two units to Vivo. ‘The auction process has not been completed yet. There is no sale,’ a Telemig spokeswoman said. Vivo is remaining tight-lipped on the reports but stands to boost its subscriber base by around four million if it completes a deal.

Vivo is not the only company interested in the two northern cellcos. On 27 July, the CEO of Mexico-based mobile giant America Movil (AM), Daniel Hajj, said his company was interested in bidding and confirmed that AM was ‘competing’ with rivals for the Brasilia-based cellcos, but said that it purchasing them was not a necessity for AM to compete effectively in Brazil.