Telefonica buys USD760m worth of Vivo stock

21 Mar 2011

Telefonica of Spain has purchased BRL1.27 billion (USD760 million) worth of voting shares in Brazilian mobile operator Vivo Participacoes from minority shareholders, Reuters reports. The sum constitutes less than 70% of the amount that the Spanish heavyweight was bidding, it said. The offer was a condition attached to Telefonica’s full takeover of Vivo, following its buyout of joint venture partner Portugal Telecom last July. Telefonica acquired 10.63 million Vivo voting shares priced at BRL118.97 each in a tender offer at the Sao Paulo stock exchange. Telefonica was bidding to buy up to 15.22 million common shares of the Sao Paulo-based cellco. Going forward it intends to merge Vivo with its fixed line operation, Telesp, and hopes the improved synergies will bolster its profits and help it to provide integrated fixed, mobile, broadband internet and pay-TV services. The integration is expected to save Telefonica in the region of USD5.8 billion per annum.

Brazil, Telefonica