PT gives thumbs down to revised Vivo bid
Portugal Telecom is still playing coy while being courted for its stake in Vivo, stating that even Telefonica's improved bid is insufficient.
Portugal Telecom CEO Zeinal Bava yesterday told a conference that the revised offer still does not reflect the strategic value of the indirect stake for Telefonica, WSJ.com said.
Telefonica increased its bid for Portugal Telecom's 50% stake in their Brasilcel JV to €6.5 billion from €5.7 billion last week. Brasilcel owns around 60% of Vivo.
But Bava is holding out for more.
Should shareholders accept Telefonica's offer, the market anticipates that Portugal Telecom will take the proceeds and invest it in a new Brazilian operator, BusinessWeek said.
The most likely target is Oi, and this knowledge has driven Oi's shares up 32% in the past month.
While it would likely be too expensive for Portugal Telecom to acquire the whole of Oi, the proceeds from a Telefonica sale could fund the acquisition of a very substantial stake.
Siitnedif investment manager Ricardo Seixas told BusinessWeek Portugal Telecom will have to invest back in Brazil, or risk becoming “a boring utility in a mature market.”