PT says Vivo prospects key in mulling Telefonica bid

LISBON, June 17 (BestGrowthStock) – Portugal Telecom (PT) (PTC.LS: )
told its shareholders on Thursday they should consider the
Brazilian market’s strong growth potential when deciding whether
to accept Telefonica’s (TEF.MC: ) bid for PT’s stake in Vivo
(VIVO4.SA: ).

PT shareholders will decide on June 30 whether to accept
Telefonica’s 6.5 billion euro ($8.7 billion) offer for PT’s 50
percent stake in Brasilcel, the joint venture through which the
pair own 60 percent of Vivo.

During a presentation to investors at a Santander (SAN.MC: )
conference in Lisbon, PT Chief Executive Zeinal Bava repeated
the company believes Telefonica’s offer does not reflect its
strategic value to Telefonica.

Bava told shareholders instead of taking the offer it could
“empower Portugal Telecom to continue to create value by
leveraging on Brazilian and Vivo exposure in the future”.

Spain’s Telefonica is aiming to gain control of Vivo to
integrate it with Telesp, its struggling fixed-line Brazilian
unit, to shore up the fast-growing emerging market and
compensate for stagnating sales at home in Spain.

It raised the offer for Vivo — Brazil’s largest mobile
phone company — by 14 percent after PT rejected its first bid
last month.

BESI, the investment arm of Banco Esprito Santo (BES.LS: ) —
the second largest shareholder in PT — opposes the sale of PT’s
Vivo stake, daily Diario Economico reported.

The newspaper quoted BESI President Jose Maria Ricciardi as
saying Telefonica’s offer was “not sufficient” and he hoped that
PT kept its stake in Vivo.

Another leading Portuguese PT shareholder, investment firm
Ongoing, has also said it does not think Telefonica’s latest
offer is high enough.

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(Reporting by Axel Bugge; editing by Karen Foster)

PT says Vivo prospects key in mulling Telefonica bid