Telefonica and Portugal Telecom have begun informal discussions about the former’s aim to secure exclusive control of Brazilian mobile operator Vivo. The two companies are discussing the possibility of Telefónica selling its 10 per cent stake in Portugal Telecom in exchange for gaining control of Vivo. Currently, Telefónica and Portugal Telecom jointly control Vivo. Of late, Vivo has been losing ground to rivals, and Telefónica partly blames the deteriorating performance on the shared governance arrangements. According to sources, the two companies also differ on the valuation of Portugal Telecom’s stake in Vivo.
