Telefonica to buy Brazil's top mobile phone operator
11 July 2007, LONDON - Spain's Telefonica wants to acquire joint venture partner Portugal Telecom's share in Brazil's leading mobile phone company.
11 July 2007
LONDON - Spain's Telefonica wants to acquire joint venture partner Portugal Telecom's share in Brazil's leading mobile phone company.
Telefonica offered PT EUR 3 billion euros ($4.1 billion) for the Portuguese firm's 50-percent stake in Vivo, the newspaper said.
The CEO of the Spanish giant, Cesar Alierta, acknowledged in an interview with the Times that Telefonica is seeking full control of Vivo, but would not specify the amount offered.
If Portugal Telecom should accept the offer, and its response is expected in August, Telefonica would probably sell its 10-percent holding in PT.
Alierta said he did not intend to merge Vivo with TIM Brasil, the operator of Telecom Italia's mobile phone service in the Latin American country, because regulators "might object."
Nonetheless, an eventual agreement on sharing telecommunications equipment could bring both Telefonica and Telecom Italia savings of some 500 million euros ($686 million) per year each.
Brazil surpassed Japan last year to become the world's fifth-biggest market for mobile telephony.
[Copyright EFE with Expatica]
Subject: Spanish news