Spanish telecommunications company TelefÃ³nica has offered at least 3 billion euros ($4.08 billion) to Portugal Telecom for a controlling stake in their Brazilian mobile venture Vivo, UK newspaper Financial Times, quoted by a BNamericaas report, said.
The Financial Times report quoted TelefÃ³nica chairman Cesar Alierta as saying that TelefÃ³nica has told Portugal Telecom that the offer will remain open until August.
The Spanish group has reportedly confirmed that it has made a bid, but has not confirmed the amount.
Vivo is a 50/50 venture between the two groups, but in terms of economic input Portugal Telecom has approximately 44.7% of voting shares and 23.8% of non-voting shares, the BNamericas report said.
'The figure of 3 billion euros has been floating around in analysts' estimates for months,' a TelefÃ³nica spokesperson told BNamericas.
The Brazilian market is growing fast, at around 21% annually, according to Carrie Pawsey, senior analyst and service manager at consultancy Ovum, the report said.With just under 106 million mobile lines in the country and a penetration rate still under 60%, it is no surprise that TelefÃ³nica is keen to get an increased slice of this market, Pawsey said in a research note, the report said.