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PT vetoes Telefónica on Vivo
Inaki Ferreras
Portugal's main telco Portugal Telecom (PT) has vetoed Spain's main telco Telefónica attempt to buy PT's Brazilian subsidiary Vivo.
After two months of fighting, finally Telefónica offered €7.15bn for Vivo but the Portuguese telco exploited its golden share against the Spanish company. However, the European Commission has declared this operation by PT "illegal" and an EU tribunal will launch a final statement within eight days or so.
This is the first time in history a European company has used a golden share to spoil a major transaction in this fashion. But the fight was strong since a 42% of PT's real capital supported Telefónica and only a 15% did not do so.
In the end of the operation the Portuguese government used its power to intervene in the Board of Shareholders and it showed himself against the sell out of Vivo. Nevertheless the government did not think PT would never use its golden share power because it thought it would rather be the shareholders who made this decision. The government was wrong.
Inaki Ferreras
Portugal's main telco Portugal Telecom (PT) has vetoed Spain's main telco Telefónica attempt to buy PT's Brazilian subsidiary Vivo.
After two months of fighting, finally Telefónica offered €7.15bn for Vivo but the Portuguese telco exploited its golden share against the Spanish company. However, the European Commission has declared this operation by PT "illegal" and an EU tribunal will launch a final statement within eight days or so.
This is the first time in history a European company has used a golden share to spoil a major transaction in this fashion. But the fight was strong since a 42% of PT's real capital supported Telefónica and only a 15% did not do so.
In the end of the operation the Portuguese government used its power to intervene in the Board of Shareholders and it showed himself against the sell out of Vivo. Nevertheless the government did not think PT would never use its golden share power because it thought it would rather be the shareholders who made this decision. The government was wrong.