(Associated Press via NewsEdge) Portugal Telecom shareholders rejected proposed changes to the company's statutes, effectively blocking Portuguese conglomerate Sonae's 11.8 billion euros ($15.5 billion) takeover bid for its bigger rival.
Shareholders held a general assembly on whether to scrap a statute stipulating that no single shareholder may hold more than 10% of the former state monopoly's voting rights.
The change was a requirement for the takeover, led by Sonae's telecommunications division Sonaecom, since the bid was conditional on acquiring 50.01% of PT.
Almost 47% of shareholders at the meeting voted against the proposal, which required at least two-thirds in favor to pass.
PT's board said the bid, which brought one of Europe's biggest takeover battles, was hostile and undervalued the company.
PT controls both Portugal's fixed-line network and its main cable television network, called TV Cabo. Its TMN cell phone company is the market leader in Portugal. In the fast-growing Brazilian market it runs the leading Vivo mobile brand with Spain's Telefonica.
Sonaecom launched its bid last year. It cleared its last regulatory hurdle in January.
Last month, amid signs shareholders were reluctant to accept its offer, Sonaecom raised its bid to 10.5 euros ($13.8) per share from 9.5 euros ($12.5).
Portugal's competition authority had said that if the bid was successful, SonaeCom would have to offload either the inherited fixed-line or cable networks.
It would also have to give up one of the two mobile licenses it would own if the deal is closed.
PT's TMN and SonaeCom's Optimus, the third-largest mobile operator, together would have held almost 70% of Portugal's mobile sector. Vodafone has the rest.
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