TELECOMS, MEDIA and flat-pack wood product tycoon Belmiro de Azevedo has lost his battle for a hostile takeover of Portugal Telecom (PT).
His company Sonaecom’s 11.6 billion euro bid for one of the country’s richest companies was in tatters on Friday after PT shareholders threw out a proposal that would have scrapped the PT group shareholder voting restrictions.
Under the current voting restrictions it is impossible for a smaller rival company, such as
Sonaecom, to get control of the company.
Sonaecom launched the takeover bid for PT a year ago, in what has been the country’s biggest planned takeover bid so far.
Sérvulo Correia, the lawyer which represented the government’s 500 public golden shares in PT ratified the majority decision, but only after the government had already refused the Sonaecom proposal.
Following the defeat, Sonaecom’s shares plummeted by 14 per cent to 5.42 euros, the company said it may consider putting in a second takeover bid if its shares – currently at 9.90 euros – are still strong a year from now, “we will turn over a new leaf.”
The PT victory was not without strings. Following the meeting and result, Public Works Minister Mário Lino said he would force PT to separate its two networks: PT Multimedia and PT, allowing a competitor to enter the fixed line and triple play markets (telephone, internet and TV).
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