Reuters | Elzio Barreto | December 28, 2010
(Reuters) – Shares of Brazil’s largest mobile phone company Vivo jumped on Tuesday after the company unveiled plans to be integrated into Telefonica’s local fixed-line phone unit.
Vivo’s most-traded preferred shares (VIVO4.SA) climbed 1.7 percent to 53.42 reais in early trading, compared with a 0.3 percent gain in the benchmark Bovespa index .BVSP. Telefonica’s Brazilian fixed-line unit Telesp (TLPP4.SA) was down 0.6 percent at 40.32 reais.
Spain’s Telefonica (TEF.MC) agreed in July to buy Portugal Telecom’s (PTC.LS) stake in Vivo for 7.5 billion euros ($9.9 billion), becoming the controlling shareholder of the Brazilian wireless company.
In a securities filing late on Monday, Vivo and Telesp said the move was part of a plan to cut costs and simplify the shareholding structure of the two companies in a bid to boost trading volumes under one single-listed entity.
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