MADRID (AFP) -- Portugal's prime minister defended his decision to veto a bid by Spain's Telefonica for part of the Brazilian firm Vivo held by Portugal Telecom (PT), saying in an interview published Sunday the move had not violated any laws.

The Portuguese state blocked the Telefonica move at a meeting of PT shareholders on Wednesday using a special “golden share” in Portugal Telecom that enables it to thwart takeovers.
The Telefonica bid nonetheless had the backing of 73.9 percent of PT shareholders.
The Spanish telecoms giant said the Portuguese government's “golden share” action was illegal, and decided to extend its offer to July 16.
“We have not infringed on anyone's rights. We are defending our interests and we are entitled to do so,” Portuguese Prime Minister Jose Socrates told the Spanish newspaper El Pais.
“There has been no violation of any rule or law. The special rights that the state has, with 500 shares, are the result of a decision approved by shareholders when Portugal Telecom was privatized,” he said.
“For many years, shareholders have lived well within this framework. I never thought I would use the special rights, because I was always hopeful that Telefonica would have the common sense to consider the strategic interests and to negotiate with the management of PT.”