Telefonica Sweetens Vivo Bid, Again

Spain’s Telefonica has sweetened its offer for a 50% stake in Brasilcel to EUR7.15bn from EUR6.50bn and almost 74% of Portugal Telecom (PT) shareholders voted to accept the offer during a meeting yesterday, June 30, PT says. About 26% of shareholders voted against it, including the Portuguese government. The battle will move to court July 8, where it will be decided if the Portuguese government’s veto of the sale is in line with the laws of the European Union. The government holds 500 class A shares in PT. This is the second time Telefonica has increased its offer. Brasilcel, a joint venture between Telefonica and Portugal Telecom, holds 60% of Vivo Participacoes.