Telefonica of Spain gains full control of what was once a joint venture it had with Portugal Telecom towards Vivo, the leading mobile phone operator in Brazil. These two European mobile phone operators once shared 50 percent each of Vivo, but since last May has offered their bids toward each other to get full control.

The reason why both companies want full control over Vivo is because of the reducing popularity of mobile phone sales in their own countries in Europe. Whereas in Brazil, the mobile phone industry is booming rapidly, so both companies want to get the full potential out of this trend.

Telefonica finally won the bidding after it went against Portugal Telecom’s last offer of 7.15 billion euros. Telefonica bidded 7.5 billion euros, more than tripling its initial offer last May, to not only seal the deal, but also avoid complications and threats by the Spain based operator to sue Portugal’s Telecom for making an illegal veto which prevented Telefonica to bid more.

In fact, the European Court of Justice has found out that Portugal’s veto is illegal, and so it raised the curtains and allowed Telefonica to bid against Portugal’s last offer, and finally win the deal. This has not only relieved the companies involved, but the investors of both companies as well.

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Post tags: Bid, Brazil's Vivo, Telefonica