Telefonica’s Brazilian units swap shares as part of restructure

Bloomberg | March 26, 2011 | Manuel Baigorri

Telefonica SA (TEF) said the boards of Telecomunicacoes de Sao Paulo SA (TLPP3), its fixed-line unit in Brazil known as Telesp, and Vivo Participacoes SA (VIVO4), the country’s biggest wireless company, agreed that all of Vivo shares will be owned by Telesp as part of a restructuring.

Telesp will boost its share capital and Vivo’s shareholders will get 1.55 new shares of Telesp for each of the Vivo shares they owned, Telefonica said in a regulatory filing.

Telefonica, based in Madrid, bought full control of Vivo, which leads Brazil’s wireless market with 30 percent of subscribers, last year and planned to incorporate its stock into Telesp to cut costs.

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