Telefonica Not Interested in Selling Vivo Stake to Portugal Telecom

MADRID -(Dow Jones)- Telefonicais not interested in selling its 50% stake in Brazil's Vivo Participacoes to Portugal Telecom, Telefonica Spain General Manager Antonio Viana-Baptista said Wednesday.

"In fact, we would still like to buy Portugal Telecom's (50%) stake in Vivo," Viana-Baptista added.

Last week, media reports cited Portugal Telecom Chief Executive Henrique Granadeiro as saying the company needs to grow in order to avoid being vulnerable to a takeover, adding that it is interested in buying Telefonica's Vivo stake.

Telefonica's relationship with Portugal Telecom has been strained since earlier this year when it supported a takeover bid for the Portuguese firm in order to gain full control of Vivo, people close to the situation said at the time.

In July, Telefonica Chairman Cesar Alierta told the Financial Times that his company had offered EUR3 billion for Portugal Telecom's stake in Vivo.

-By Jason Sinclair, Dow Jones Newswires; +34 913958127; jason.sinclair@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 3rd October 2007