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Telefónica pulls out of €7.15bn Vivo bid
19 July 2010
After opposition from the Portuguese government, Telefónica has withdrawn its bid to buy Portugal Telecom’s stake in Vivo of Brazil
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Telefónica
Vivo
Portugal Telecom
Brasilcel
Brazil
Telefónica has withdrawn its twice-sweetened bid to acquire Portugal Telecom’s stake in Brazil’s Vivo Participacoes. The company had offered €7.15 billion for Vivo’s stake.
PT asked Telefónica to extend the offer period from July 16 to 28, a proposal that Telefónica rejected. The Spanish group sought to merge Vivo with Telesp, its underperforming fixed-line provider in Brazil.
Nearly 74% of PT’s shareholders accepted Telefónica’s offer in June 2010. However, the Portuguese government blocked the sale using authority to veto sales in key companies.
Telefónica, which had initially offered €5.7 billion for PT’s 50% stake in Brasilcel, the joint venture with Telefónica which controls Vivo, first raised its bid to €6.5 billion after the PT board rejected its first bid and then to €7.15 billion. GTB