On 1 June the Board of Directors of Portugal Telecom met and decided to call an Extraordinary General Meeting (“EGM”) of its shareholders with a proposed resolution whether to accept or reject the offer for the acquisition of 50% of Brasilcel for Euro 6.5 billion or any higher price presented by Telefónica any time before the date of the Meeting (“Offer”).
On 29 June Telefónica reviewed the Offer and offered a new consideration of Euro 7.15 billion. The reviewed Offer was submitted to the shareholders at the EGM that was held today.
The voting quorum was 62.9% and around 74% of the votes expressed at the EGM were favorable to the acceptance of the Offer. The Portuguese Government, through its Class A shares, voted against the Offer. According to the understanding of the Chairman of the Shareholders Meeting of Portugal Telecom, the resolution could not pass against the vote corresponding to the Class A shares. Therefore, the Offer was deemed as rejected.
The Board of Directors met today to discuss the outcome of the EGM and has considered that there are some legal matters that require clarification and, as a result, will be obtaining legal opinions.
Taking into account that Telefónica extended the term of its current offer revised on 29 June until 16 July, a new meeting of the Board of Directors will be scheduled once the referred legal opinions are obtained.