PT Dumps Telefonica Request To Boost Dividend Linked To Vivo Bid
22 June 2010 - 4:14AM
Dow Jones News
Portugal Telecom SGPS S/A (PT) said Monday that it rejected a
proposal from Telefonica SA (TEF) to discuss the distribution of an
extraordinary dividend if the Portuguese company's shareholders
agree to sell the firm's stake in Vivo Participacioes SA (VIV).
Telefonica asked that an extraordinary dividend, of EUR1 a share
or more, be included in a shareholders' vote at PT's extraordinary
shareholder meeting June 30 to discuss Telefonica's EUR6.5 billion
bid for PT's stake in the Brazilian mobile company.
PT said in a filing with regulators that it rejected the
dividend proposal on legal grounds. The chairman of PT's
shareholders meeting claims the proposed dividend discussion is
conditional on the approval of Telefonica's offer at the same
meeting, and that dividend proposals need the ratification of the
company's directors and its audit committee, and the review of the
company's results.
Both Telefonica and PT control Vivo through a 50-50 joint
venture in the investment vehicle Brasilcel, which owns 60% of
Vivo.
PT has said the offer doesn't value Vivo appropriately but will
allow its shareholders to vote over whether it accepts Telefonica's
offer on June 30.
Company websites:
http://www.telecom.pt
http://www.telefonica.com
-By Santiago Perez, Dow Jones Newswires, 34 913958119,
santiago.perez@dowjones.com
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