Portugal Telecom rejects Telefonica offer to buy Vivo
www.WirelessFederation.com/news: Unsolicited, binding and unconditional offer has been received by Portugal Telecom from Telefonica to acquire PT’s 50 percent stake in Brasilcel, the holding company of Vivo which is a joint venture between Portugal Telecom and Telefonica.
EUR 5.7 billion has been offered by Telefonica for PT’s 50 stake in Brazilian mobile operator Vivo and the last date for the offer is June 6. On May10, Portugal telecom had a board meeting to discuss the offer and collectively rejected it.
According to Portugal Telecom, Vivo is core to PT’s strategy and the sale of its stake would be against the long term growth prospects of PT.
Vivo Q1 revenue reaches BRL 4.23 billion (Brazil)
www.WirelessFederation.com/news: First-quarter revenues of Brazilian mobile operator Vivo’s has increased by BRL 4.04 billion in the year-earlier quarter to BRL 4.23 billion. 3.8 percent year-on-year increase in the EBITDA has also been recorded which went up to BRL 1.27 billion. Vivo is a joint venture of Telefonica and Portugal Telecom.
The EBITDA margin was almost flat year-on-year at 30.4 percent. The operator added nearly 2.20 million customers in the first quarter and reached 53.94 million customers at the end of March. This has been about 42.8 percent of the overall net additions on the domestic market.
Vivo had 30.12 percent market share at the end of the quarter.
Telefonica aims better ties with Telesp & Vivo (Brazil)
www.WirelessFederation.com/news: In order to improve its weakening position in Brazil, Spanish telecoms behemoth Telefonica has reportedly expressed its desire to strengthen the relationship between its Brazilian fixed line unit Telefonica Brazil (Telesp) and Vivo Participacoes.
Vivo Participacoes is the Sao Paulo-based mobile operator it jointly owns with Portugal Telecom.
Earlier, the Brazilian unit was considered to be one of the most profitable zones for Telefonica but currently it is going through a very rough phase, struggling amid intense local competition. Telefonica has claimed to improve its trading position by seeking closer integration between Telesp and Vivo which in turn can generate improved cost savings.
No comment has yet been received from Telefonica and Portugal Telecom.
Brazil’s mobile base increases by 0.67% in Feb
www.WirelessFederation.com/news: With an increase of 0.67 percent on the total number of mobile lines in January, the mobile phone base of Brazil reached 176.8 million in February. The latest data has been published by Brazil regulator Anatel.
Almost 1.2 million phones in the country were added in the month of February which has been the second best performance in the month after 2008. The month of February was ended by Vivo on a good note as its market share went up from 29.87 percent in January to 29.93 percent.
With a market share of 25.50 percent against 25.52 percent in January, Claro stood at the second spot. TIM Participacoes held third position with 23.65 percent market share, up from 23.63 percent in January, while Oi finished the month with 20.56 percent against 20.61 percent in January.
12.96 million mobile lines received 3G mobile services.
Portugal Telecom should buy Telefonica’s stake in Vivo: Vasconcellos
www.WirelessFederation.com/news: Brazil has been described as “indispensable” to the Portugal Telecom future growth by the main individual shareholder, Nuno Vasconcellos. The shareholder has also said that that PT should focus on acquiring Telefonica’s participation in Brazilian mobile operator Vivo.
Nuno Vasconcellos currently owns a 6.74 percent stake in Portugal Telecom via the Portuguese investment fund Ongoing Strategy Investments. Telefonica is the largest shareholder of PT with 10 percent stake, followed by Brandes Investments Partners (9.48%), Espirito Santo (8.63%) and Caixa Geral (7.28%).
Selling the Vivo stake now “even at a great price has been described as throwing away the future of the company. Vivendi’s entry on the Brazilian market via the GVT acquisition has changed the things in the local market.
According to Vasconcellos, if Telefonica doesn’t act fast, the market may consolidate in a different direction and a hostile takeover from anyone is not welcome, but he had also not denied raising his stake in Portugal Telecom, explaining that “any shareholder happy with a company may consider” further increasing his stake.
