Copying and distributing are prohibited without permission of the publisher
Telefónica bids €5.7bn for Brasilcel
11 May 2010
Telefónica is bidding €5.7bn for Portugal Telecom’s stake in Brasilcel, which would give it control of Brazilian operator Vivo
Read more:
Telefónica
Brazil
Brasilcel
Vivo
Portugal Telecom
Movistar
O2
Telefónica has placed an offer of €5.7 billion for a 50% stake in Portugal Telecom’s Brasilcel. Telefónica already owns 50% stake in Brasilcel.
The offer has been rejected by Portugal Telecom’s board of directors. Portugal Telecom and Brasilcel both own stakes in mobile operator Vivo Participacoes.
Telefónica will also launch a tender offer over the ordinary shares of Vivo not owned by Brasilcel, which will represent nearly 11.1% of the total number of ordinary shares and 3.8% of the total capital stock of Vivo.
The price per ordinary share in the tender offer will be 80% of the value assigned to each ordinary share owned by Brasilcel, totalling €600 million.
The total amount of the transaction including the price offered for the acquisition of the shares of Brasilcel owned by Portugal Telecom and the price in the tender offer over the ordinary shares of Vivo not owned by Brasilcel, will be nearly €6.3 billion.
Telefónica owns substantial mobile operations in other South American countries, operating under the Movistar brand, a brand which is also used in Spain. In Europe outside Spain Telefónica’s brand is O2. GTB