Brazil headquarters of Telefonica. The telecommunications giant wants to increase its stake in mobile subsidiary Vivo. Source: AP
HB LISBON. The dispute between Europe Telefonica PT and escalated for dominance in the Brazilian mobile operators Vivo. The O2-mother Telefonica threatened the smaller Portuguese rivals on Wednesday enemy with a take over, if the latter wants to maintain its stake Vivo. Also warned TelefonicaSantiago Fernandez Valbuena, Chief Financial Officer in the Financial Times (FT) that it could stop the dividend payments of the Brazilian joint venture.
PT-chief Zeinal Bava cast Telefonica give up before then blackmail and requested Valbuena, his position as Board Member of PT. "He did his duty of loyalty to PT injured and is in a conflict of interest."
Vivo is Brazil’s largest mobile communications provider, offering better growth prospects for European companies than on their home markets. Telefonica participates with 31.8 percent of Vivo, but will assume control of Vivo. Therefore, the Spaniards had PT this month offered € 5.7 billion for its share, which is also 31.8 percent. PT rejected the bid. The task of Vivo’s share would amount to an amputation, PT CEO Bava said at the time. PT and Telefonica are engaged together in the last ten years Vivo.
The recent statements of the TelefonicaFinancial leaders in the "FT called" the Portuguese Exchange Commission on the plan.
The Authority called for a clarification of Telefonica. The Spaniard explained that there was still no decision on a takeover of its competitor. Such a step would not be excluded. The shares of Portugal Telecom closed almost six per cent in the Plus, while the TelefonicaPapers yielded 0.2 percent.