1 August 2010

Telefónica acquires Portugal Telecom’s stake in Vivo

De Brauw advised Telefónica, one of the world's largest telecommunications companies, on the EUR 7.5 billion acquisition of Portugal Telecom’s stake in Vivo, by purchasing its 50% holding in Brasilcel. Brasilcel N.V. is the joint venture company through which Telefónica and Portugal Telecom jointly held their shares in Vivo.

After months of negotiations on the sale of Portugal Telecom's interest in Vivo, Telefónica announced on 19 July 2010 that it had instructed De Brauw to initiate arbitral proceedings against Portugal Telecom in order to terminate the joint venture. Only a week and a half later, Portugal Telecom agreed to the sale of its interest in Vivo. Telefónica had argued that the fact that Portugal Telecom allowed the Portuguese government to exercise its golden shares and reject an earlier offer of Telefónica was illegal, and breached the joint venture agreement between the parties.
Team: Jaap Winter, Marnix Leijten, Jeroen van der Schrieck and Edward van Geuns