Telefonica threatens to push PT bosses out -report

LISBON, May 31 (BestGrowthStock) – Spain’s Telefonica (TEF.MC: ) is
considering a proposal to seek a change of management at
Portugal Telecom (PT) (PTC.LS: ) if the Portuguese company does
not agree to sell its stake in Brazilian joint venture Vivo
(VIVO4.SA: ), Diario Economico reported on Monday.

This month Portugal Telecom rejected an offer by Telefonica
of 5.7 billion euros ($6.98 billion) to buy PT’s half of
Brasilcel, a holding company that controls about 60 percent of
Vivo.

The Portuguese business daily cited a foreign shareholder in
Portugal Telecom as saying Telefonica was considering whether to
put forward a proposal to replace the board of directors at
Portugal Telecom but would wait to see if PT changed its mind on
selling Vivo.

“Telefonica informed us that it is not going to raise the
offer for Vivo and considering the impossibility of calling a
shareholder assembly it is considering advancing with a proposal
of getting rid of the board of directors,” Diario quoted the
shareholder source as saying.

The paper said the shareholder had been contacted by
Telefonica.

Telefonica’s bid for Vivo has turned increasingly
acrimonious in recent weeks, particularly after Telefonica Chief
Financial Officer Santiago Fernandez Valbuena was quoted in an
interview with the Financial Times as saying it could launch a
hostile takeover bid in an attempt to persuade PT to let Vivo
go.

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(Reporting by Axel Bugge; editing by Karen Foster)

Telefonica threatens to push PT bosses out -report