Telefonica pulls out of Vivo stake talks
By Harold Heckle |
July 19, 2010, Monday
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Print Edition
Print Edition
SPANISH telecommunications giant Telefonica on Saturday pulled out of negotiations to acquire a US$9.3 billion stake in Brazil's leading cell phone company Vivo.
Telefonica said in a statement to Madrid's stock exchange that the deal fell through after Portugal Telecom's board of directors failed to accept the Spanish company's offer by the deadline.
"The deal has been extinguished," Telefonica said.
Though PT shareholders voted two weeks ago to accept the offer, the Portuguese government used special voting rights to block the sale, citing national interests. The European Union's Court of Justice then ruled that the Portuguese government's blocking of the deal was illegal.
Telefonica, which is keen to expand in the Latin American market, and PT each own 50 percent of Brasilcel, a Dutch holding company which owns 60 percent of Vivo.
The Spanish company's offer was to buy PT's half of Brasilcel and following the court's finding it extended the offer until July 16.
Telefonica said in a statement to Madrid's stock exchange that the deal fell through after Portugal Telecom's board of directors failed to accept the Spanish company's offer by the deadline.
"The deal has been extinguished," Telefonica said.
Though PT shareholders voted two weeks ago to accept the offer, the Portuguese government used special voting rights to block the sale, citing national interests. The European Union's Court of Justice then ruled that the Portuguese government's blocking of the deal was illegal.
Telefonica, which is keen to expand in the Latin American market, and PT each own 50 percent of Brasilcel, a Dutch holding company which owns 60 percent of Vivo.
The Spanish company's offer was to buy PT's half of Brasilcel and following the court's finding it extended the offer until July 16.
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