Portugal vetoes PT Vivo sale
PORTUGAL TELECOM said yesterday it will seek legal clarification on a decision by the government to veto the sale of its stake in Brazilian mobile phone company Vivo against the wishes of shareholders.
Portugal’s socialist government surprised analysts and markets yesterday by invoking its so-called golden share in PT and vetoing the sale of PT’s stake in Vivo to Spain’s telecoms giant Telefonica for €7.15bn (£5.9bn).
PT said in a statement that its board of directors met after a shareholder assembly to decide on the sale of Vivo and “considered that there are some legal matters that require clarification and, as a result, will be obtaining legal opinions.”
Shareholders voted by 74 per cent in favour of the sale of Vivo versus 26 against, but the government invoked its golden share at the meeting, vetoing the sale and overriding the wishes of shareholders.
The chairman of yesterday’s shareholder assembly decided the government’s use of the golden share was legal.
PT said that once it has heard legal experts on the matter it would hold a new meeting of the board of directors to consider the sale of Vivo to Telefonica.
It said this meeting would take into account the fact that Telefonica had extended the Vivo offer until 16 July.
Telefonica said late Wednesday that it would extend the offer and that it considered the Portuguese government’s veto illegal.
Two leading Portuguese PT shareholders added their weight to the fight, saying they voted to sell Vivo at the shareholder meeting, changing their opposition to the sale after Telefonica raised the offer price by 10 per cent on Tuesday.