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Telefonica Wont Extend Bid for Brazil's Vivo

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Telefonica has ruled out the possibility of extending the July 16th deadline for its USD9 billion offer for Portugal Telecom's stake in their Brazilian joint venture. The offer has been accepted by 74% of Portugal Telecom's shareholders, although the Portuguese government attempted to use its "golden share" to block the deal. This was later ruled illegal by the European courts.

"This ends July 16," Chairman Cesar Alierta told Bloomberg News. "Brasilcel is a relationship between Portugal Telecom and Telefonica and as far as I know there is no need for anybody else to interfere."

The two phone companies jointly own Brasilcel, which controls 60 percent of Vivo Participacoes. Telefonica originally offered USD7 billion for the Brazilian stake, but later raised it to the current USD9 billion.

Telefonica will go to a Dutch arbitration court to seek the breakup of Brasilcel if it can't reach an agreement this week, Spanish newspaper ABC reported today, citing people close to the phone company's board it didn't identify. In the event that Brasilcel were broken up, Telefonica would seek to buy shares in Vivo in the open market until it reaches majority control, ABC added.

On the web: Bloomberg News

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Tags: telefonica   vivo  portugal telecom  brasilcel  telecom  court  Brazil