Vivo Offer Expires

5:15 AM -- If Telefónica SA (NYSE: TEF) still wants to buy control of Brazilian mobile operator Vivo Participacoes SA , it'll have to rely on Plan B.

Its initial strategy, to buy out joint venture partner Portugal Telecom SGPS SA (NYSE: PT), was scuppered by the Portuguese government, and its €7.15 billion (US$9.3 billion) offer expired late Friday, July 16. (See Telefónica's $8.8B Brazilian Deal Blocked, TEF Hits Back Over Vivo, and Is Vivo Deal Back On?.)

PT's board, though, is clearly still keen to strike a deal. It requested an extension of TEF's offer to July 28, but the Spanish giant, in a letter dated July 17, noted that, "as we have verbally communicated to you before the expiration of such offer," the deadline for acceptance was set at 23:59 Lisbon time last Friday.

So what next? Another offer, with new conditions? It's hard to imagine Telefónica will just shrug its shoulders and walk away from this one.

— Ray Le Maistre, International Managing Editor, Light Reading

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