Telefonica, Spain's major telecommunications group, has recently announced that it will embark on a road show with the international institutional investors of Portugal Telecom to convince them of the benefits of selling PT's equity stake in Brazilian mobile operator Vivo to Telefonica.

In the meantime, the company has also offered EUR5.7 billion for PT’s 50 percent in Vivo, in which it has the other 50 percent, a premium of 145 percent to Vivo’s average market value prior to the bid which PT refused, saying that the stake was strategic to PT’s long term growth.

Further, Telefonica added that its offer, to run until 6 June, was final.

The company said in a statement, “PT's stake in Vivo could be worth over EUR8bn, but that value has never been reflected by the market prior to Telefonica's offer.”

Before the offer, PT’s stake was totaled at EUR2.3 billion, while the market in Brazil has deteriorated since, because of the growth in competition and fall in prices imposed by the government.

In addition, the statement released by Expansion, “PT will not be able to get a better offer from another buyer, as Telefonica is the one with the highest interest in the stake, due to synergies in Brazil.”