Takeover bid lifts Portugal Telecom shares

Portugal Telecom shares soared over 30% to a record high after Portuguese conglomerate Sonae launched a surprise 10.7-billion-euro takeover bid for the firm, an AFP report said.

The report quoted Sonae, led by Portugal's richest man Belmiro de Azevedo, as saying that it would pay 9.50 euros a share for the former state monopoly in what was the biggest ever takeover bid on the Lisbon stock exchange.

The offer, priced at 16% more than Portugal Telecom's closing level of 8.18 euros, was conditional on acceptances from the owners of at least 50.01% of the firm's 1.13 billion shares, Sonae said in the AFP report.

The report said shares in Portugal Telecom, the nation's largest telecom firm, hit a new high of 10.83 euros in early morning trading before easing below the 10-euro mark.
Analysts said the offer could trigger a bidding war for Portugal Telecom, which had long been seen as a potential target for Spain's Telefonica, the report said.

The report said Sonae would also go after Portugal Telecom's multimedia unit, PT Multimedia.

Suggested Articles

Wireless operators can provide 5G services with spectrum bands both above and below 6 GHz—but that doesn't mean that all countries will let them.

Here are the stories we’re tracking today.

The 5G Mobile Network Architecture research project will implement two 5G use cases in real-world test beds.