Portugal Telecom's board is continuing its extended deliberations on Telefonica's (EURO)7.15 billion ($9.3 billion) offer for its stake in Brazil's leading cell phone company, Vivo.
PT shareholders have voted to accept the bid, but the company's board has rejected it and the Portuguese government has used its special voting rights to block it.
The government says the two companies are negotiating.
Telefonica wants to expand its presence in the fast-growing Latin American market, but PT doesn't want to give up its Brazilian revenue stream.
PT and Telefonica each own 50 percent of Brasilcel, a holding company which owns 60 percent of Vivo. The Spanish company wants to buy PT's half of Brasilcel, and its offer expires at midnight Friday.