UPDATE 1-PT board to reconvene Friday on Vivo stake sale

* Portugal Telecom board reaches no decision on Vivo

* Board has until Friday to endorse Telefonica offer

(Adds further details)

By Sergio Goncalves

LISBON, July 15 (BestGrowthStock) – Portugal Telecom’s (PTC.LS: )
board will continue discussing Telefonica’s (TEF.MC: ) 7.15
billion euro-bid for its stake in Vivo (VIVO4.SA: ) on Friday,
after failing to reach a decision on Thursday, two sources close
to PT shareholders said.

“The meeting ended without any decision. It will resume
tomorrow,” one source said.

Spain’s Telefonica is eager to take full control of Vivo,
Brazil’s top cellphone business, which it currently owns jointly
with Portugal Telecom.

It has extended the acceptance period for its offer to
Friday after the Portuguese government blocked the transaction
by using its golden share in Portugal Telecom.

A majority of Portugal Telecom shareholders had voted in
favour of the deal just ahead of the government’s intervention.

Analysts have said that Telefonica, which is battling
flattening sales at home, would benefit from merging Vivo with
its struggling Brazilian fixed line business, Telesp.

But Portugal Telecom has described selling Vivo, its only
significant overseas business, as “amputating its future”. No
one at the company was available for comment on Thursday.

Portugal Telecom’s shares had earlier jumped almost 5
percent on market talk a deal had been reached, but pared gains
and by 1440 GMT was 2.6 percent higher at 8.38 euros after
Telefonica said it was not aware of an agreement.
(Writing by Shrikesh Laxmidas and Victoria Howley; Editing by
Greg Mahlich)

UPDATE 1-PT board to reconvene Friday on Vivo stake sale