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Mergers and Acquistions News

Categories: Telecoms

July 29th 2010, 17:03PM

Spanish firm Telefonica will acquire Portugal Telecom's (PT)shares in Brazilian mobile company Vivo, it has emerged.

According to Reuters, Telefonica will be better positioned to move into the flourishing Brazilian telecoms market after the acquisition for £7.5 billion (£6.2 billion) of 50 per cent of the company.

In a sign of the Spanish firm's determination to break into the market, this is ?350 million (£291) more than a previous bid.

The acquisition comes after lengthy contractual discussionsthat had looked like derailing the deal.

Telefonica chairman Cesar Alierta said the deal means the telecoms firm the leader in Brazil.

The news provider added that the acquisition had been inked by the Portuguese government, who have given their approval for the deal. They had rejected an earlier bid.

Mr Alierta welcomed the deal.

"We are delighted to have reached this agreement with Portugal Telecom which benefits both companies shareholders. It is a unique value creation opportunity. Vivo leads the Brazilian mobile telephony market, a market to which Telefonica is strategically committed," he said.

According to the news source, Telefonica shares closed at ?17.005, up 0.7 per cent.
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