Telefonica sweetens Vivo bid in effort to secure PT stake

Telefonica of Spain has increased its bid for Portugal Telecom’s indirect stake in their 50:50 Brazilian mobile joint venture Vivo Participacoes from EUR5.7 billion (USD8.1 billion) to EUR6.5 billion. The Portuguese operator confirmed that it has indeed received an improved bid in a filing to Portugal’s stock market regulator. Portugal Telecom said that Telefonica’s revised offer comes in the shape of two alternative plans: the first would see the immediate sale of PT’s entire 50% holding, while the second option would see the sale triggered at PT’s discretion at some point during an agreed three-year period. It is understood that the PT board met yesterday to discuss the improved offer and that while they consider it does not reflect the strategic value of the Brazilian asset, have decided to call a shareholders meeting to discuss the offer in full.