Black Friday Sale! Save huge on InvestingProGet up to 60% off

Angola's dos Santos sticks to her bid price for Portugal Telecom

Published 27/11/2014, 11:01
© Reuters. A communications tower of Portugal Telecom (PT) is pictured at Monsanto park in Lisbon
PHRA
-
SEM
-
ATCE
-

LISBON (Reuters) - Angolan entrepreneur Isabel dos Santos will maintain her takeover offer of 1.35 euros a share for Portugal Telecom (LS:PTC), considering it fair despite the stock's 25 percent rise since her bid almost three weeks ago, a source said.

The source close to dos Santos said the offer by her Terra Peregrin company - which values the whole Portugal Telecom holding company at 1.21 billion euros (0.96 billion pounds) - already incorporates a premium to shareholders.

The holding company has no operating assets but owns a near 26 percent stake in Brazil's Oi, which has incorporated PT's operating assets after a merger that is still to be fully completed. It also holds 900 million euros in debt issued by a bankrupt holding firm of Portugal's Espirito Santo Group.

Dos Santos launched the bid for Portugal Telecom on Nov. 9 in an attempt to thwart a separate 7.025 billion-euro bid for PT's operational assets by Altice (AS:ATCE), controlled by Franco-Israeli billionaire telecoms entrepreneur Patrick Drahi.

On Nov. 12, private equity firms Bain Capital and Apax Partners joined the bidding battle to buy the operating assets from Oi, launching a bid worth 7.075 billion euros. Portuguese conglomerate Semapa (LS:SEM) joined the funds on Thursday, expecting to take a five to 10 percent share in the investment.

Oi said it had not received any improved bids so far.

Several analysts have said that the price offered by dos Santos is too low and the most likely scenario was that Oi would sell the Portuguese assets unimpeded.

The entry of a Portuguese partner would help address concerns in Portugal that one of the country's largest companies and employers will no longer be Portuguese.

Dos Santos, the daughter of Angola's president Jose Eduardo Dos Santos, has said her bid was designed to preserve the company as a single Portuguese company.

The bid represented a 17 percent premium over the three-week average market price of the shares before it was launched, but PT shares have risen more than 25 percent since the bid to trade at over 1.5 euros.

© Reuters. A communications tower of Portugal Telecom (PT) is pictured at Monsanto park in Lisbon

Shares were flat at 1.55 euros in early trading on Thursday, while Semapa was 2.1 percent lower at 9.1 euros.

(Reporting By Sergio Goncalves, writing Andrei Khalip; editing by Axel Brugge and Susan Thomas)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.