Telefónica Confident of Securing Control of Vivo

Spanish telecoms giant Telefónica is increasingly confident of securing exclusive control of Brazil's largest mobile operator Vivo, UK newspaper Financial Times reported.

Portugal Telecom, which is a joint shareholder of Vivo with Telefónica, is fighting a takeover bid by rival Portuguese telecoms company Sonaecom.

Sonaecom is willing to sell PT's Vivo stake to Telefónica if it succeeds with its hostile takeover bid, the newspaper quoted unnamed sources as saying.

Vivo's performance had been "dreadful" partly due to Telefónica and PT's joint control, the newspaper reported Sonaecom's chief executive Paulo Azevedo as saying.

Sonaecom could use proceeds to repay the debt it would have after buying PT, the newspaper reported.

Vivo saw its market share fall 5.5 percentage points to 29% and almost 29mn subscribers at the end of 2006 from 34.5% at the end of 2005, according to data from telecoms regulator Anatel."

Posted to the site on 9th February 2007