Telmex Buys Into Portugal Telecom

Mexican telecoms company Telmex, Mexico’s largest fixed-line operator, has bought a 3.4% stake in Portugal Telecom (PT). PT is currently defending itself from a hostile takeover bid by rival company Sonaecom for $14.2 billion. Telmex has not discarded the possibility that it may raise its stake in PT, possibly bidding against Sonaecom to take control of the company. Analysts believe Telmex may be interested in acquiring, indirectly, a stake in Vivo, Brazil’s largest mobile phone operator which is jointly owned by PT and Spain’s Telefónica. Telefónica is also PT’s largest shareholder, owning 9.96% of its shares.