Advertising

The Seattle Times Company

NWjobs | NWautos | NWhomes | NWsource | Free Classifieds | seattletimes.com

Business / Technology


Our network sites seattletimes.com | Advanced

Originally published Wednesday, July 28, 2010 at 2:04 AM

Comments (0)     E-mail E-mail article      Print Print      Share Share

Telefonica: new deal with PT to buy Brazil's Vivo

Telefonica said Wednesday it has reached an initial agreement with Portugal Telecom to acquire a controlling share in Vivo, Brazil's largest cell phone company, for a reported euro7.5 billion ($9.77 billion).

Associated Press Writer

MADRID —

Telefonica said Wednesday it has reached an initial agreement with Portugal Telecom to acquire a controlling share in Vivo, Brazil's largest cell phone company, for a reported euro7.5 billion ($9.77 billion).

In a statement to market regulators, Telefonica gave no figures but the newspaper El Pais says the company has agreed to pay PT euro7.5 billion for its 50 percent stake in Brasilcel, a Dutch holding company which in turn owns 60 percent of Vivo. Telefonica already owns the other half of Brasilcel.

That amount is euro350 million more than Telefonica's last offer to PT. PT's shareholders accepted it in late June, but the Portuguese government blocked the deal by exercising special voting rights. The European Union's Court of Justice then ruled the government's blocking of the deal was illegal.

El Pais said the new deal has the blessing of the Portuguese government.

The Telefonica and PT boards will meet Wednesday to vote on the new transaction, Telefonica said.

Telefonica is eager to expand its significant presence in the fast-growing Latin American sector, where it has an important foothold in burgeoning markets such as Chile, Colombia, Mexico, Peru, Venezuela and Brazil.

Brazil's economy is booming, in contrast to Telefonica's home territory of Spain which is struggling to emerge from nearly two years of recession.

PT is Portugal's largest telecommunications operator and the Portuguese government demanded it maintain a foothold in Brazil as it did not want to lose PT's Brazilian revenue stream.

E-mail E-mail article      Print Print      Share Share

More Business & Technology

UPDATE - 09:46 AM
Exxon Mobil wins ruling in Alaska oil spill case

UPDATE - 09:32 AM
Bank stocks push indexes higher; oil prices dip

UPDATE - 08:04 AM
Ford CEO Mulally gets $56.5M in stock award

UPDATE - 07:54 AM
Underwater mortgages rise as home prices fall

NEW - 09:43 AM
Warner Bros. to offer movie rentals on Facebook

More Business & Technology headlines...

Comments
No comments have been posted to this article.

advertising


Get home delivery today!

Video

Advertising

AP Video

Entertainment | Top Video | World | Offbeat Video | Sci-Tech

Marketplace

Advertising