News Update: Telefonica SA Beefs Up Pressure on Portugal Telecom from Bid Refusal (TEF,PT,DB)
05/26/2010 – Europe’s largest telecommunications company, Telefonica SA (NYSE:TEF), stepped up pressure Wednesday on Portugal Telecom (NYSE:PT) through an online presentation on Telefonica SA’s website saying that its bid for Vivo was rejected by Portugal Telecom “without due consideration,” since it was rejected after only four days.
Telefonica SA’s online presentation also criticized board members for failing to give international investors a fair chance to look at its proposal offer for Vivo.
Telefonica SA’s chief financial officer refused to rule out a bid by the company for Portugal Telecom, as well, in today’s Financial Times newspaper.
However, Deutsche Bank AG (NYSE:DB) analysts don’t think such a bid is very likely, since the Portuguese government holds a major share in Portugal Telecom and the government would probably “be uncomfortable ceding control of a national champion” to a foreign firm at such a time.
Shares of Telefonica SA closed yesterday at $56.66, whereas Portugal Telecom closed out the trading day at $9.12.
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