Thursday, 21 September 2017

Friday Review: Brazilian battleground

By Mary Lennighan, Total Telecom
Friday 30 July 10

Telefonica and Portugal Telecom go from cooperation to competition in Brazil. Plus the week's news highlights.

As one battle for control ends, another begins. The tug of war between Iberian operators Telefonica and Portugal Telecom over their Vivo joint venture came to an end this week – a hefty sum of money resolved that one. But now the telcos are set to go head to head in Latin America's largest market as the battle lines are redrawn. Telefonica's agreement to acquire Portugal Telecom's shares in Brasilcel, which holds a majority stake in Vivo, on Wednesday sent a clear message: the Spanish incumbent really, really wanted sole control of the Brazilian mobile operator. Having upped its offer three times in the past few months and enacted several (largely unsuccessful) manoeuvres designed to help it get its own way, Telefonica finally swayed Portugal Telecom by agreeing to pay €7.5 billion for the stake…

As one battle for control ends, another begins. The tug of war between Iberian operators Telefonica and Portugal Telecom over their Vivo joint venture came to an end this week – a hefty sum of money resolved that one. But now the telcos are set to go head to head in Latin America's largest market as the battle lines are redrawn. Telefonica's agreement to acquire Portugal Telecom's shares in Brasilcel, which holds a majority stake in Vivo, on Wednesday sent a clear message: the Spanish incumbent really, really wanted sole control of the Brazilian mobile operator. Having upped its offer three times in the past few months and enacted several (largely unsuccessful) manoeuvres designed to help it get its own way, Telefonica finally swayed Portugal Telecom by agreeing to pay €7.5 billion for the stake…

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