Portugal Telecom shares soar on surprise takeover bid

0 Comments | AFP, February, 2006

LISBON (AFP) — Shares in former state monopoly Portugal Telecom soared by more than 18 percent after the Portuguese conglomerate Sonae launched a surprise 10.7-billion-euro (12.8-million-dollar) bid for the company.

Sonae, led by Belmiro de Azevedo, Portugal's richest man, said in a statement late Monday that it would pay 9.50 euros a share for Portugal Telecom in what is the biggest ever takeover bid on the Lisbon stock exchange.

The offer, priced at 16 percent higher than Portugal Telecom's 8.18 euros closing price Monday, is conditional on owner accepting at least 50.01 percent of the firm's 1.13 billion shares, Sonae said.

Shares in Portugal Telecom, the nation's largest telecommunications operator, jumped by 18.46 percent to 9.69 euros on the Lisbon...