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Telefónica sells 8% Portugal Telecom stake
24 June 2010
Telefónica, which is bidding for Portugal Telecom’s stake in Brazilian operator Vivo, has sold most of its own shares in Portugal Telecom
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Telefónica
Portugal Telecom
Vivo
Spain
Brazil
Telefónica has offloaded an 8% stake in Portugal Telecom. Financial terms of the deal were not disclosed. At current market prices, the sale to international investors is estimated to be worth nearly €800 million.
Spanish incumbent Telefónica, which is the single biggest shareholder in PT, now owns only a 2% stake in the Portuguese company. It is seeking to gain control of a Brazilian mobile company, Vivo Participacioes, which is jointly owned by it and PT. It has tendered an unsolicited offer of €6.5 billion for PT’s stake in Vivo.
Shareholders in PT, which has a market value of €10 billion and 1.13 billion shares outstanding, include TPG-Axon Capital Management, a hedge fund, with a 4.24% stake, asset management units of UBS with a combined 5.8% stake and two Portuguese banks, Banco Espirito Santo and Caixa Geral de Depositos. GTB