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| Ausbanc backs Telefonica-Vivo offer |
Ausbanc President Luis Pineda said Telefonica SA’s offer for a stake in Brazil’s largest wireless operation, Vivo, is good news for consumers in Spain, Portugal and Brazil.Telefonica SA is looking to buy Portugal Telecom SGPS SA out of Vivo, their Brazilian mobile phone venture – but the Euro 7.15 billion offer was initially vetoed by the Portuguese government.
However, in early July, the European Court of Justice said the government did not have this veto right.
Pineda, speaking to reporters during a press conference in Portugal, said the deal would allow the Portuguese carrier “to carry out important telecommunications infrastructure investments in the country,” and added that this is also an opportunity for Spain. “If Portugal Telecom takes advantage of these funds to take a giant step in telecommunications quality and service capacity, such an advance will be an added force for the improvement of the benefits of the Spanish network”.
During the press conference, celebrated in Lisbon, AUSBANSCE president Fredericho Favacho, through a video conference link, participated from Brazil. He noted his concern at the position of the Portuguese government, and highlighted the benefits of Telefonica investments for Brazilian consumers.
Prior to the Ausbanc press conference, the consumer advocacy group presented the consumers’ position on Telefonica’s offer to Portugal Telecom for a stake in Vivo.
The press conference was delivered in Portuguese, Spanish and English, and within the framework of the EU.
Pineda reiterated his optimism at the deal, noting that the operation would allow the Portuguese operator “to carry out important and investments in the telecommunications infrastructure of telecommunications throughout the country.”
“We find it perplexing that Portugal’s president decided at this time to veto an operation that would suppose an enormous support to public digital development programmes; especially at a time of delicate global and national financial times, when Portugal has suffered a 12.6% drop in investment and its balance of payments continues in the red,” he added.
“This is how shareholders have understood it, highlighted by the 73.9% acceptance of the offer….The government action would be better understood if it was directed not at the veto, but at negotiating with the company joint developments and improvement to this strategic sector – which is important for employment,” said Pineda. 
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