Telefonica pulls out of Vivo bid

image captionThe Portuguese government had blocked Telefonica's bid for Vivo

Spanish telecom firm Telefonica has pulled out of its bid to buy a 7.15bn euros ($9.2bn; £6bn) stake in Brazilian mobile company Vivo.

"The deal has been extinguished," Telefonica said in a stock market statement on Saturday.

The company had made its offer to Portugal Telecom (PT), which owns a large holding in Vivo.

Earlier this month, a European Court of Justice ruling overruled the Portuguese government's objections to the deal.

The government owns a "golden share" in PT, and had blocked the Telefonica deal despite the fact shareholders in PT had accepted it.

The court ruled that the Portuguese government's action broke rules on the free movement of capital.

Following the ruling, analysts had expected the deal to go ahead.

However, Telefonica said it dropped its offer after a deadline for PT to accept the bid had expired.

More on this story

Related Internet Links

The BBC is not responsible for the content of external sites.