Telefonica abandons $9.3-bn Vivo deal, may break JV with Portugal Telecom
19 Jul 2010
Spanish telecommunications giant Telefonica has abandoned its $9.3-billion bid for acquiring Portugal Telecom's indirect stake in their 50:50 Brazilian mobile joint venture Vivo Participacoes.
But the acrimonious takeover battle may lead to Telefonica asking a Dutch court to break up Brasilcel NV, the equal joint venture that controls Vivo.
On 17 July Telefonica, Spain's largest telecom operator decided to walk away from the deal even though Portugal Telecom's board requested Telefonica to extend its 16 July bid closing deadline to 28 July.
''The offer, in accordance with its terms and conditions, expired on 16 July,'' Telefonica said in a regulatory filing.
In May, Madrid-based Telefonica, which provides its services in Europe and Latin America, had offered to buy Portugal Telecom's 50 per cent stake in Vivo for $6.9 billion, which was instantly rejected by Portugal Telecom.
Telefonica sweetened its offer early late month by $1 billion to $7.9 billion, which was once again rejected by Portugal Telecom, (See: Telefonica sweetens bid for Vivo to $7.9 billion).
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