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PT has no plans to sell stake in Brazil's Vivo

Portuguese Telecom is adamant

THE FUR is flying again in a battle between Portugal Telecom (PT) and Spain's Telefonica over control of Brazilian mobile operator, Vivo.

Portugal Telecom chairman, Henrique Granadeiro, told a Portuguese newspaper, Diario Economico, that, "PT is not a seller of Vivo, as we keep repeating. Our focus is an operational turnround."

He was responding to a report in the FT that Telefonica had offered around €3 billion ($4 billion) for its partner's 32.33 per cent holding in the Brazilian mobile phone network operator, Vivo.

Brazil recently emerged as the world's fifth largest market for mobile telephony. As PT points out, it – rather than Spain's Telefonica, is the natural partner for Vivo since Portuguese is Brazil's mother tongue.

Vivo has been the centre of a battle between the two Iberian telecoms companies ever since PT suspected Telefonica of being behind a hostile bid for PT from smaller rival, Sonaecom.

Portugal is, of course, England's oldest ally.