Telefonica has taken a new approach in its effort to control Brazilian operator Vivo, selling most of its stake in Portugal Telecom due to fears it would not be allowed to vote on its own offer to buy the Portugese telecom company out of their Brazilian joint venture. The Financial Times (FT) reports that the Spanish telecoms group is hoping that the undisclosed buyers of an 8 percent stake (worth around EUR640 million) in Portugal Telecom will vote in favour of Telefonica’s EUR6.5 billion offer to buy the Portugese company out of Vivo, Brazil’s largest mobile operator. Portugal Telecom shareholders vote on Telefonica’s offer next Wednesday. Telefonica was Portugal Telecom’s largest shareholder. Telefonica is left with a two percent stake in Portugal Telecom which it plans to retain, according to the FT.

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 stake in Vivo. The outcome of next Wednesday’s vote by Portugal Telecom is uncertain, and some analysts believe Telefonica could raise its EUR6.5 billion offer by another EUR500 million or more. An earlier offer of EUR5.7 billion was rejected.