Is Vivo Deal Back On?

7:15 AM -- Having found its initial efforts to buy a controlling stake in Brazilian mobile operator Vivo Participacoes SA thwarted, Telefónica SA (NYSE: TEF) may get a second bite at the cherry. (See Telefónica's $8.8B Brazilian Deal Blocked and TEF Hits Back Over Vivo.)

According to Reuters, the European Court of Justice today ruled that the so-called "golden share" in Portugal Telecom SGPS SA (NYSE: PT) held by the Portuguese government, which used it to block the €7.15 billion (US$9.5 billion) deal between the neighboring Iberian operators, is illegal.

That re-opens the door for the acquisition to be brokered and sealed, which would help Telefónica achieve its Latin American aims, but leave Portugal Telecom with little more than its domestic operations.

— Ray Le Maistre, International Managing Editor, Light Reading

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