Portugal Telecom informs that, in reference to Telefonica’s offer to acquire the fifty-percent stake in Brasilcel, NV, held by Portugal Telecom (“Offer”), and following the Extraordinary Shareholders’ Meeting that took place on 30 June 2010, PT's designated representatives engaged in negotiations with representatives of Telefonica, SA, (“Telefonica”) to analyse future options for Vivo and the Offer.
The negotiations with Telefonica progressed in a constructive manner and PT’s Board of Directors has been committed to using its best endeavours to conclude them in a way that satisfied the interests of all parties. For such purposes, and to continue working towards a positive outcome, the Board of Directors resolved yesterday to request formally a final extension of the validity of the Offer until 28 July 2010.
Notwithstanding negotiations with regard to the said final extension having occurred, Telefonica informed Portugal Telecom on 17 July 2010 that it did not accept the request from the Board of Directors of Portugal Telecom for a final extension of the validity of the Offer. The Offer thus expired at 23:59 of 16 July 2010.
A copy of both letters are attached hereto.