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Portugal Telecom takeover
Portugal Telecom takeover
seems that yesterday Sonae group (modelos supermakets etc etc) have tabled a bid to buy out Portugal Telecom...biggest takeover bid in Lisbon stock exchange history
wonder what will happen if it goes through?
wonder what will happen if it goes through?
heres a report from bloomberg (just wondering have they applied for a licence to take over PT!!!)
Sonae Makes EU10.7 Billion Offer for Portugal Telecom (Update1)
Feb. 6 (Bloomberg) -- Sonae SGPS SA, controlled by Portugal's richest man, Belmiro de Azevedo, offered to buy Portugal Telecom SGPS SA for 10.7 billion euros ($12.8 billion).
Sonae, based near Oporto, Portugal, is offering 9.50 euros a share and 5,000 euros for each of Portugal Telecom's convertible bonds, Sonae said today in statements on the securities regulator's Web site. The offer is 16 percent more than Portugal Telecom's 8.18 euro closing price.
Sonae, whose market value is a quarter that of Portugal Telecom, would become the biggest telecom operator in Portugal with fixed-line, wireless and Internet services. The offer was made with Sonaecom SGPS SA, Sonae's publicly traded telecommunications business and the smallest of Portugal's three mobile-phone operators. The bid by Sonae surprised investors.
``It definitely seems a bit strange, but it looks like Sonae has got the cash,'' said Martin Schulz, director at Allegiant International Equity Fund in Cleveland, which oversees $26 billion in assets, including Portugal Telecom shares.
Santander Central Hispano SA, Spain's No. 1 bank, is arranging the financing, Sonae said.
Portugal Telecom shares fell 2 cents, or 0.2 percent, to close at 8.18 euros today. They've declined 4.3 percent this year, second-worst in Portugal's benchmark PSI-20 Index. Sonae fell 1 cent to 1.18 euros, leaving it unchanged so far this year.
May Get Support
Some investors have advocated keeping Lisbon-based Portugal Telecom, a former government monopoly, in Portuguese hands. Banco Espirito Santo SA is among investors who bought stakes in Portugal Telecom, citing in part on concern companies such as Spain's Telefonica SA may make a bid for the company.
Telefonica, Spain's biggest phone company, is Portugal Telecom's second-biggest shareholder, according to Bloomberg data, and the two companies have a joint venture in Brazil which operates that country's biggest mobile-phone service.
Nuno Prego, Portugal Telecom's investor relations director, wasn't immediately available for comment. Telefonica spokesman Miguel Angel Garzon declined to comment.
Portugal Telecom's net income fell 41 percent in the first nine months of last year to 318.6 million euros. Sales grew 5.8 percent to 4.66 billion euros.
Portugal's weak economy has taken a toll on Portugal Telecom's biggest division, which provides traditional phone service.
The European Commission estimates Portugal's economic expansion was the second-slowest in the 25-nation European Union last year. Portugal Telecom also lost market share in fixed-line service to Sonaecom and other rivals.
Sonae Makes EU10.7 Billion Offer for Portugal Telecom (Update1)
Feb. 6 (Bloomberg) -- Sonae SGPS SA, controlled by Portugal's richest man, Belmiro de Azevedo, offered to buy Portugal Telecom SGPS SA for 10.7 billion euros ($12.8 billion).
Sonae, based near Oporto, Portugal, is offering 9.50 euros a share and 5,000 euros for each of Portugal Telecom's convertible bonds, Sonae said today in statements on the securities regulator's Web site. The offer is 16 percent more than Portugal Telecom's 8.18 euro closing price.
Sonae, whose market value is a quarter that of Portugal Telecom, would become the biggest telecom operator in Portugal with fixed-line, wireless and Internet services. The offer was made with Sonaecom SGPS SA, Sonae's publicly traded telecommunications business and the smallest of Portugal's three mobile-phone operators. The bid by Sonae surprised investors.
``It definitely seems a bit strange, but it looks like Sonae has got the cash,'' said Martin Schulz, director at Allegiant International Equity Fund in Cleveland, which oversees $26 billion in assets, including Portugal Telecom shares.
Santander Central Hispano SA, Spain's No. 1 bank, is arranging the financing, Sonae said.
Portugal Telecom shares fell 2 cents, or 0.2 percent, to close at 8.18 euros today. They've declined 4.3 percent this year, second-worst in Portugal's benchmark PSI-20 Index. Sonae fell 1 cent to 1.18 euros, leaving it unchanged so far this year.
May Get Support
Some investors have advocated keeping Lisbon-based Portugal Telecom, a former government monopoly, in Portuguese hands. Banco Espirito Santo SA is among investors who bought stakes in Portugal Telecom, citing in part on concern companies such as Spain's Telefonica SA may make a bid for the company.
Telefonica, Spain's biggest phone company, is Portugal Telecom's second-biggest shareholder, according to Bloomberg data, and the two companies have a joint venture in Brazil which operates that country's biggest mobile-phone service.
Nuno Prego, Portugal Telecom's investor relations director, wasn't immediately available for comment. Telefonica spokesman Miguel Angel Garzon declined to comment.
Portugal Telecom's net income fell 41 percent in the first nine months of last year to 318.6 million euros. Sales grew 5.8 percent to 4.66 billion euros.
Portugal's weak economy has taken a toll on Portugal Telecom's biggest division, which provides traditional phone service.
The European Commission estimates Portugal's economic expansion was the second-slowest in the 25-nation European Union last year. Portugal Telecom also lost market share in fixed-line service to Sonaecom and other rivals.
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Guest
more news about the pt takeover
Portugal Telecom Soars After Sonae's EU10.7 Bln Bid (Correct)
Feb. 7 (Bloomberg) -- Shares of Portugal Telecom SGPS SA, the nation's largest telephone company, had their biggest gain ever after competitor Sonae SGPS SA offered to buy the company for 10.7 billion euros ($12.8 billion).
The shares rose as much as 22 percent to 10 euros, and traded at 9.75 euros as of 9:26 a.m. in Lisbon, exceeding Sonae's offer of 9.50 euros a share. Sonae, based near Oporto, Portugal, announced the unsolicited offer yesterday in regulatory filings. Sonae's market value is a quarter of that of Portugal Telecom.
Belmiro de Azevedo, Portugal's richest man and the main shareholder of Sonae, wants to expand in the telecommunications business where he already operates through Sonaecom SGPS SA, the smallest of Portugal's three mobile-phone operators. To win over investors, he may have to increase the offer, said John dos Santos, an analyst at Lisbon Brokers.
The offer ``is a bit short in monetary terms,'' dos Santos said in a note to investors today. ``It does not reflect the full fair value of Portugal Telecom.''
Portugal Telecom said the offer is unsolicited and the company's board will meet today to review the offer. Santander Central Hispano SA, Spain's No. 1 bank, is arranging the financing, Sonae said yesterday. Sonaecom is also taking part of the bid, according to the statement. Shares of Sonae, Sonaecom and PT Multimedia SGPS SA, a unit of Portugal Telecom, were suspended from trading.
The bid is contingent on getting more than 50 percent of Portugal Telecom shares, according to the statement. Sonae is also offering 5,000 euros for each of Portugal Telecom's convertible bonds, it said.
Portugal Telecom Soars After Sonae's EU10.7 Bln Bid (Correct)
Feb. 7 (Bloomberg) -- Shares of Portugal Telecom SGPS SA, the nation's largest telephone company, had their biggest gain ever after competitor Sonae SGPS SA offered to buy the company for 10.7 billion euros ($12.8 billion).
The shares rose as much as 22 percent to 10 euros, and traded at 9.75 euros as of 9:26 a.m. in Lisbon, exceeding Sonae's offer of 9.50 euros a share. Sonae, based near Oporto, Portugal, announced the unsolicited offer yesterday in regulatory filings. Sonae's market value is a quarter of that of Portugal Telecom.
Belmiro de Azevedo, Portugal's richest man and the main shareholder of Sonae, wants to expand in the telecommunications business where he already operates through Sonaecom SGPS SA, the smallest of Portugal's three mobile-phone operators. To win over investors, he may have to increase the offer, said John dos Santos, an analyst at Lisbon Brokers.
The offer ``is a bit short in monetary terms,'' dos Santos said in a note to investors today. ``It does not reflect the full fair value of Portugal Telecom.''
Portugal Telecom said the offer is unsolicited and the company's board will meet today to review the offer. Santander Central Hispano SA, Spain's No. 1 bank, is arranging the financing, Sonae said yesterday. Sonaecom is also taking part of the bid, according to the statement. Shares of Sonae, Sonaecom and PT Multimedia SGPS SA, a unit of Portugal Telecom, were suspended from trading.
The bid is contingent on getting more than 50 percent of Portugal Telecom shares, according to the statement. Sonae is also offering 5,000 euros for each of Portugal Telecom's convertible bonds, it said.