Portuguese stock market regulator approves Sonaecom's bid for larger rival

Portugal's stock market regulator approved Sonaecom's offer for its larger rival Portugal Telecom, paving the way for the nation's largest-ever hostile takeover bid to go ahead.

The regulator, the CMVM, said in a statement it had registered Sonaecom's offer of 9.50 euros per share in former state monopoly Portugal Telecom (PT) and 9.03 euros per share in PT's cable unit PT Multimedia.

The bid, worth 13 billion euros (17 billion dollars), was first unveiled in a surprise move in February.

Sonaecom, a listed subsidiary of Portuguese conglomerate Sonae, submitted its offer prospectus to the stock market regulator on December 29.

Portugal Telecom has about 75 percent of the nation's fixed-line telephone market, 80 percent of the broadband cable market and, through TMN, about half of the mobile phone market, according to company figures.

It also runs Brazilian mobile services operator Vivo in a joint venture with Telefonica.

Sonaecom controls Optimus, Portugal's third-biggest mobile phone provider.

Shares in Sonaecom closed up 0.85 percent at 5.95 euros while PT shares ended the day Friday up 0.69 percent at 10.20 euros.


Portuguese stock market regulator approves Sonaecom's bid for larger rival
01-12-2007, 18h37
LISBON (AFP)

photo
Portugal's stock market regulator approved Sonaecom's offer for its larger rival Portugal Telecom, paving the way for the nation's largest-ever hostile takeover bid to go ahead.
(Sonaecom)

Portugal's stock market regulator approved Sonaecom's offer for its larger rival Portugal Telecom, paving the way for the nation's largest-ever hostile takeover bid to go ahead.

The regulator, the CMVM, said in a statement it had registered Sonaecom's offer of 9.50 euros per share in former state monopoly Portugal Telecom (PT) and 9.03 euros per share in PT's cable unit PT Multimedia.

The bid, worth 13 billion euros (17 billion dollars), was first unveiled in a surprise move in February.

Sonaecom, a listed subsidiary of Portuguese conglomerate Sonae, submitted its offer prospectus to the stock market regulator on December 29.

Portugal Telecom has about 75 percent of the nation's fixed-line telephone market, 80 percent of the broadband cable market and, through TMN, about half of the mobile phone market, according to company figures.

It also runs Brazilian mobile services operator Vivo in a joint venture with Telefonica.

Sonaecom controls Optimus, Portugal's third-biggest mobile phone provider.

Shares in Sonaecom closed up 0.85 percent at 5.95 euros while PT shares ended the day Friday up 0.69 percent at 10.20 euros.

AFP