Thursday, 29th July 2010 by David Thorley

Telefónica has agreed to buy Portugal Telecom′s stake in the companies′ Brazilian joint venture, after an EU ruling scuttled the Portuguese government′s attempt to veto the sale.

Machado, Meyer, Sendacz e Opice Advogados is representing Telefónica in the deal, with the company raising its bid for Brasilcel to US$9.8 billion yesterday.

The company tabled a US$7.2 billion offer in May this year, but the deal appeared to be derailed by the Portuguese government′s vote against Portugal Telecom giving up its stake in Brasilcel.

Earlier this month the European Court of Justice ruled that its ′golden′ shareholding in the company gave it undue influence over the company′s decisions.

With the deal apparently off the table, Telefónica also announced it would take the battle for control of Brasilcel to the Permanent Court of Arbitration at the Hague.

By acquiring Brasilcel, Telefónica will also take control of Brazil′s largest mobile phone operator, Vivo, in which the joint venture holds a 60 per cent stake. The Spanish company has also announced it intends to acquire additional shares in Vivo through an IPO.

Machado Meyer partner Moshe Sendacz says, ′Most of the operation was carried out in Spain, Portugal and Holland. But because it amounts to a change in control of a Brazilian publicly traded telecoms provider there were various corporate matters to be resolved as well as capital market and telecoms regulations to be analysed.′

The company has also hired Uría Menéndez in Spain, and Cuatrecasas, Gonçalves Pereira to advise on Portuguese law.

Spanish firm Garrigues Abogados is leading the counsel to Portugal Telecom from its Lisbon office, while Souza, Cescon, Barrieu & Flesch Advogados is advising the company in Brazil.

Counsel to Telefónica

Spain

·         Uría Menéndez

Partners Cándido Paz-Ares in Madrid and Carlos Costa Andrade in Lisbon 

Portugal

·         Cuatrecasas, Gonçalves Pereira

Partner Manuel Castelobranco 

Brazil

·         Machado, Meyer, Sendacz e Opice Advogados 

Partners Moshe Sendacz, Fernando Tonanni and Luiz Felipe Duarte Martins Costa and associate Estevão Gross Neto 

Counsel to Portugal Telecom

Portugal

·         Garrigues Abogados

Partner Diogo Leonidas in Lisbon 

Brazil

·         Souza, Cescon, Barrieu & Flesch Advogados

Partners Maria Cristina Cescon, Carlos Augusto Junqueira and Fabíola Cammarota de Abreu and associates Ricardo Freoa, Cristina Ramos and Joyce Honda

(Latin Lawyer 29.07.2010)

(Notícia na Íntegra)