Briefs: Sonea bid for Portugal Telecom rejected

Portugal Telecom Wednesday formally rejected what it characterized as a lowball and hostile takeover bid by conglomerate Sonae.

The head of the nation's primary fixed-line telco told a news conference that the bid also lacked a strategic vision that would make the $12.6 billion offer worthwhile.

There was no immediate response from Sonae, which Tuesday night had publicly vowed it would allow the Portuguese government to keep its so-called golden share of the former state-run company -- a provision that gives Lisbon the ability to veto decisions by the chief executive officer.

Taking over Portugal Telecom would give Sonae, which is run by financier Belmiro de Azevado, a solid position in Portugal's landline and mobile telecom sector.

Analysts have predicted that one of the other major European telcos could step in and make a bid for Portugal Telecom after Sonae was officially rebuffed.

Copyright 2006 by United Press International