Telefonica increases Vivo offer to EUR7.15bn

30 Jun 2010

Dow Jones reports that Telefonica of Spain yesterday increased its offer for Portugal Telecom’s stake in their Brazilian mobile joint venture Vivo Participacoes to EUR7.15 billion (USD8.73 billion), in a bid to convince shareholders of the Portuguese firm to change their mind and exit the Brazilian venture. Telefonica and PT have been locked in a battle for control of Vivo. They currently each control 50% of local investment vehicle Brasilcel which owns a 60% stake in the Brazilian cellco. The Spanish operator’s improved offer will be put before PT shareholders at a meeting called to vote on the unsolicited bid today. Telefonica says its offer is ‘the final and definitive offer and Telefonica will not amend, improve, adjust, extend or in any other manner modify it.’ Having seen its original EUR5.7 billion offer dismissed almost immediately as too low last month, the Spaniards subsequently sweetened their bid to EUR6.5 billion.

Brazil, PT Portugal (MEO), Telefonica