Telefonica in $7.4B bid to take over Brazil's Vivo

[May 11, 2010]  MADRID (AP) -- Spain's Telefonica SA on Tuesday made a euro5.7 billion ($7.4 billion) offer to take over Vivo, Brazil's leading mobile phone operator.

Telefonica and Portugal Telecom each own 50 percent of Brasilcel, which in turn owns 60 percent of Vivo. The bid is for the half of Brasilcel that Telefonica does not already own, although Portugal Telecom said that its board has unanimously rejected the offer.

Telefonica said it would also consider launching a tender for the ordinary shares of Vivo not owned by Brasilcel.

Portugal Telecom said Vivo was core to its strategy and the sale of its stake would be against its long term growth prospects.

The offer will expire June 6.

[Associated Press]

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.