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Portugal Telecom rejects Sonaecom improved offer in takeover bid

Portugal Telecom rejects Sonaecom improved offer in takeover bid

Portugal Telecom on Tuesday rejected telecommunications company Sonaecom's offer in a takeover bid, the company's CEO Henrique Granadeiro said.
Last week, Sonaecom raised its offer to euro10.50 (US$13.50) per share, from a previous bid of euro9.50 (US$12.50) per share that had not been expected to gain shareholder approval.
Granadeiro said the new offer still undervalued the company, and cited strong full-year earnings and higher gains than expected from a future merger between mobile operators Optimus and TMN from both Sonaecom and PT.
"We are recommending to our shareholders to not sell their shares at the price of euro10.50 (US$13.50)," he said.
Under Portuguese securities law, Sonaecom cannot raise its offer again, unless there is a counter bid. It also cannot ask for a deadline extension or change the takeover condition of having to acquire at least 50.01 percent in the telecom.
Portugal Telecom shareholders meet March 2 to decide whether to lift a 10-percent limit to shareholder voting rights in the company, an important move that could allow Sonaecom's bid to proceed.
If Portugal Telecom shareholders vote against changing the company's bylaws, Sonaecom would be barred for 12 months from launching a new bid, market regulator CMVM said Monday.
Sonacom's bid expires March 9.
PT controls both Portugal's fixed-line network as well as TV Cabo, its main cable television network.
Sonaecom is the telecommunications subsidiary of Sonae, a company managed by tycoon Belmiro de Azevedo which deals in distribution operations, shopping mall management, tourism and industrial production of wood-based materials.


Updated : 2021-10-20 11:21 GMT+08:00