Sonaecom advances opposed

Shareholders have overwhelming voted in favor of maintaining the State’s golden share in Portugal Telecom, effectively blocking any possibility of Sonaecom gaining control of the country’s leading telecommunications operator.

Facing shareholder resistance, Sonaecom had progressively stepped up its bid in recent weeks, raising the offer price from $12.60 per share to $13.90, and two days ago announcing an ambitious $7.53 billion shareholder remuneration plan for the 2007-2010 period.

Sonaecom’s advances were opposed by leading shareholders such as BES (9% of stock) and private investor Joe Berardo (4% of stock). There was also considerable opposition from PT’s small investors and staff, who feared job losses and demonstrated outside the general meeting on Sunday.

According to PT’s articles of association, a qualified majority was required to eliminate the State’s golden share.

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