Brazil’s Vivo shares rise after Telesp integration proposal

* Vivo shares climb on plans to be folded under Telesp

* Telefonica’s Telesp unit shares fall

RIO DE JANEIRO, Dec 28 (BestGrowthStock) – Shares of Brazil’s
largest mobile phone company Vivo jumped on Tuesday after the
company unveiled plans to be integrated into Telefonica’s local
fixed-line phone unit.

Vivo’s most-traded preferred shares (VIVO4.SA: ) climbed 1.7
percent to 53.42 reais in early trading, compared with a 0.3
percent gain in the benchmark Bovespa index (.BVSP: ).
Telefonica’s Brazilian fixed-line unit Telesp (TLPP4.SA: ) was
down 0.6 percent at 40.32 reais.

Spain’s Telefonica (TEF.MC: ) agreed in July to buy Portugal
Telecom’s (PTC.LS: ) stake in Vivo for 7.5 billion euros ($9.9
billion), becoming the controlling shareholder of the Brazilian
wireless company. [ID:nN28196592]

In a securities filing late on Monday, Vivo and Telesp said
the move was part of a plan to cut costs and simplify the
shareholding structure of the two companies in a bid to boost
trading volumes under one single-listed entity.
(Reporting by Elzio Barreto, editing by Maureen Bavdek)

Brazil’s Vivo shares rise after Telesp integration proposal