Monday, 23 October 2017

Friday Review: An offer they can't refuse

By Mary Lennighan, Total Telecom
Friday 04 June 10

Telefonica throws cash at the Brazil problem and analysts share their thoughts on mobile data pricing.

Telefonica and Portugal Telecom have been uneasy partners in Brazilian mobile operator Vivo since they each took a 50% stake in holding company Brasilcel in late 2002; each has been rumoured to be keen to buy out the other on a number of occasions, and with significant growth and revenue potential in Brazil it is easy to see why. But now word has it that the Spanish operator has made its Portuguese peer an offer it can't refuse. On Wednesday Telefonica slapped a hefty $6.5 billion bid on the table, having previously offered $5.7 billion for Portugal Telecom's shares. That's big money by anyone's standards. According to analysts at Sanford C Bernstein, Telefonica has made "an offer Portugal Telecom cannot refuse". And the Portuguese incumbent appears to be giving it due consideration…

Telefonica and Portugal Telecom have been uneasy partners in Brazilian mobile operator Vivo since they each took a 50% stake in holding company Brasilcel in late 2002; each has been rumoured to be keen to buy out the other on a number of occasions, and with significant growth and revenue potential in Brazil it is easy to see why. But now word has it that the Spanish operator has made its Portuguese peer an offer it can't refuse. On Wednesday Telefonica slapped a hefty $6.5 billion bid on the table, having previously offered $5.7 billion for Portugal Telecom's shares. That's big money by anyone's standards. According to analysts at Sanford C Bernstein, Telefonica has made "an offer Portugal Telecom cannot refuse". And the Portuguese incumbent appears to be giving it due consideration…

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