Portugal Telecom (PT) has reportedly agreed to buy a stake in Brazilian telecoms operator Telemar Norte Leste (Oi) following its decision to sell its Vivo stake to Telefonica of Spain, as it looks to remain in the potentially lucrative telecoms market in Brazil. As reported in CommsUpdate yesterday, Telefonica has agreed a deal to buy PT’s 50% stake in their mobile joint venture Vivo, Brazil’s largest mobile operator by subscribers, after increasing its bid for the third time to EUR7.5 billion (USD9.8 billion). The Portuguese firm is now planning to pay a maximum of around BRL8.4 billion (USD4.8 billion) for indirect and direct stakes equivalent to 22.4% of Oi, both companies have confirmed in separate regulatory filings. Oi meanwhile, also plans to acquire 10% of PT, replacing Telefonica as the Portuguese company’s single largest investor. Swapping Vivo for Oi, will effectively leave PT with a similar subscriber base and footprint in Brazil, but with a stronger balance sheet, it said in a presentation. Whereas Vivo is purely focused on the domestic wireless market, Oi is the country’s leading fixed line provider by subscribers and the number four player in the mobile market.