Telefónica's Vivo Battle Heats Up
8:05 AM -- As Spain and Portugal prepare to face each other in the World Cup on Tuesday, the countries' national telecom operators, Telefónica SA (NYSE: TEF) and Portugal Telecom SGPS SA (NYSE: PT), will battle for control of Brazilian mobile operator Vivo Participacoes SA . (See GOOOOAAAALLLL!!!!!!, 2010 World Cup Predictions, and Spain Leads LR World Cup Poll.)
According to the Financial Times, Portugal Telecom shareholders are due to vote Wednesday on Telefónica's €6.5 billion (US$8 billion) offer to buy them out of their joint venture company, Brasilcel, which is the majority stakeholder in Vivo.
Telefónica has been fighting to win control of Vivo for months, to boost its position in Brazil, while Portugal Telecom wants to hold on to its stake in the Brazilian company. (See Tensions Rise Around Vivo, Telefónica Ups Its Vivo Offer, Telefónica €5.7B Bid for Vivo Rejected, and TEF Goes Nuts for Brazil.)
— Michelle Donegan, European Editor, Light Reading Mobile