Telefonica has raised its offer to buy Portugal Telecom (PT) out of its Brazilian mobile venture Vivo by 10 percent, a last-ditch attempt to woo PT shareholders ahead of today’s vote. The Latin American and Spanish operator giant has upped its offer from EUR6.5 billion to EUR7.15 billion. An earlier offer of EUR5.7 billion was rejected in May. Telefonica’s board last night authorised the new offer after the Portugese stock market regulator on Monday delivered a setback to its chances of success today at the special meeting of Portugal Telecom’s shareholders. Telefonica had sold shares equivalent to an 8 percent stake in PT because of fears that it would not be able to vote on its Vivo offer at the meeting. It therefore hoped that the new owners of the stake would vote in favour of Telefonica’s offer. However, the Portugese regulator said the voting rights relating to the 8 percent stake should remain with Telefonica.

Telefonica’s desire to take control of Vivo is understood to be part of a drive to more closely integrate Vivo with its underperforming Brazilian fixed-line arm, Telesp. Telefonica and Portugal Telecom jointly own Brasilcel, a holding company with a controlling 60 percent stake in Vivo.