UPDATE 1-PT calls June 30 shareholder assembly on Vivo bid

* Offer for Vivo stake of 6.5 bln euros

* Portugal PM says nation benefits from current size of PT

(Updates with details, background)

LISBON, June 4 (BestGrowthStock) – Portugal Telecom (PTC.LS: ) has
called a shareholder meeting for June 30 to consider
Telefonica’s (TEF.MC: ) bid for its stake in Brazilian mobile
operator Vivo (VIVO4.SA: ).

In a statement, PT said the extraordinary meeting would
consider “the price of the current offer or an eventual higher
that may be offered”.

Telefonica raised its offer for PT’s stake in the Brasilcel
joint venture that controls Vivo this week to 6.5 billion euros
($7.95 billion) after PT rejected a previous 5.7 billion euro
bid.

PT shareholders said this week they believed the value of
PT’s stake in Vivo was still worth more than Telefonica had
offered, considering the strong potential of the Brazilian
market, where Vivo is the largest mobile operator.

PT management has resisted selling its stake in joint
venture Vivo because Brazil represents PT’s only significant
foreign growth market.

But Telefonica has made clear it may not give up before it
captures all of Vivo, even threatening to make a hostile bid for
PT.

Separately on Friday, Prime Minister Jose Socrates said
Portugal benefits from the current size of PT and that the
state’s golden share in PT, which gives it the right to veto
strategic decisions, “is there to be used when necessary”.

Investing Basics

(Reporting by Axel Bugge, editing by Will Waterman)

UPDATE 1-PT calls June 30 shareholder assembly on Vivo bid