Portugal Telecom on Wednesday accused Spain’s Telefónica of using “unacceptable blackmail” in support of a €5.7b ($7b) bid to buy the Portuguese company out of Vivo, their Brazilian mobile phone joint venture.

Mr. Bava was responding to Mr. Valbuena’s comments in a Financial Times interview that Telefónica might block Portugal Telecom’s access to dividends from Vivo. Mr. Valbuena also said Telefónica was keeping open the option of launching a hostile bid for Portugal Telecom.
“This attempt at blackmail over the Vivo dividends is unacceptable and does not intimidate us,” Mr. Bava told the FT.
He said Mr. Valbuena should resign from the Portugal Telecom board because he had failed in his duty of loyalty to the Portuguese company and had shown a clear conflict of interest.
Portugal Telecom’s board unanimously rejected Telefónica’s €5.7b offer for its stake in Vivo earlier this month.
“The board’s decision reflects our determination to defend PT’s interests intransigently and our focus on creating shareholder value,” said Mr. Bava.
“I understand that the decision we have taken does not please Telefónica’s CFO. But after the comments he has made, he should resign from PT’s board.”
(Source: FT.com)