PT and Telefónica are going to proceed with a joint restructuring of VIVO. The objective is to concentrate in one single organisation, listed in Sao Paolo and New York (Vivo Participações), the share holders of organisations held by Brasilcel. The operation will benefit the structure of the Brazilian operator and will allow it to become more agile and it will strengthen the PT commitment within the Brazilian market and within the joint-venture with Telefonica. 
 

Portugal Telecom and Telefónica are going to concentrate in Telesp Celular Participações (TCP), which will be renamed “Vivo Participações”, all the shareholders of Tele Centro Oeste Celular Participações (TCO), Tele Sudeste Celular Participações (TSD), Tele Leste Celular Participações (TLE) and Celular CRT Participações (CRTPar).  This mandatory Exchange of shares operation will take place following the approval of the restructuring at the General Assembly of the different entities, foreseen for 8th February 2006.  The operation which will be concluded by end of March will benefit the shareholders of the main Brazilian mobile operator, whose organisational structure will be simplified, costs for being listed on the stock exchange will lower and internal synergies will increase and of course a predictable rise in cash and bank balances.  This operation renders concrete the intention announced pertaining to the launch of VIVO, by Miguel Horta e Costa, Executive Chairman of PT, of integrating the VIVO undertakings in one single company listed on the stock exchange.