An audacious $12.5bn bid for Portugal Telecom by Sonae has sparked a consolidation frenzy in the Portugese market. For many believe that if the bid by conglomerate Sonae fails, then one of the large European telco's such as France Telecom or Telefonica of Spain might step in.
Sonae is a much smaller engineering to telco conglomerate that already operates a fixed line and mobile business in Portugal. Portugal Telecom's share price has jumped on the back of the news.
Whether the deal is successful or not will largely depend on the Portugese government who owns a golden share and has a veto on the appointment of the CEO and Chairman. Either way the bid should lead to a restructuring of the cosy Portugese telecom market.
And the consolidation and restructuring of the European telco market continues.
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