Telefonica submits USD7.3bn unsolicited bid to control Vivo

11 May 2010

European telecoms giant Telefonica of Spain has made an unsolicited USD7.3 billion bid to buy out Portugal Telecom (PT), its equal partner in Brazil’s leading cellco by subscribers, Vivo Participacoes. PT has however rejected the approach which values the Brazilian operation at 140% more than its current market capitalisation. Bloomberg cites a statement from the Portuguese firm’s board which says it unanimously rejected the bid because the Brazilian operator is seen to be core to its strategy. Nevertheless, the Spanish partner’s attempt to seize control is fuelling speculation that the pair will continue to vie for control of Vivo – the region’s largest wireless carrier – which is expected to expand by 11% this year, in subscriber terms.

Brazil, PT Portugal (MEO), Telefonica