Sonae.com, EDP Gain After Report of OniWay Agreement
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Sonae.com, EDP Gain After Report of OniWay Agreement
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sonae.com, EDP Gain After Report of OniWay Agreement (Update1)
By Jim Silver
Lisbon, Nov. 14 (Bloomberg) -- Sonae.com SGPS SA, Vodafone Telecel-Comunicacoes Pessoais SA and Portugal Telecom SGPS SA rose on a report the three wireless phone companies will buy out a rival, easing competition in the Portuguese market.
OniWay, a joint venture led by EDP, is close to agreeing to sell its assets to Portugal's three wireless phone companies for about 180 million euros ($181 million), Web site Negocios.pt reported late yesterday, citing no one.
If true, ``it's good for everyone,'' said Pedro Rodrigues, a fund manager at Lisbon's Finivalor. ``It's good for EDP, because it stops spending money, and it's good for the others, because there's one less operator.''
Sonae.com gained 8 cents, or 4.6 percent, to 1.81 euros at 12:30 p.m. in Lisbon. Telecel rose 21 cents, or 2.8 percent, to 7.79 euros, and Portugal Telecom added 10 cents, or 1.7 percent, to 6.14 euros. EDP-Electricidade de Portugal SA, owner of the start-up operator, rose 2 cents, or 1.2 percent, to 1.64 euros.
Analysts and industry executives say Portugal can't sustain four mobile operators because 85 percent of the population already has a mobile phone. Of the three existing operators, only two, Portugal Telecom SGPS SA's TMN unit and Vodafone Telecel- Comunicacoes Pessoais SA, are making money.
Vodafone spokeswoman Luisa Pestana said her company wasn't negotiating to buy OniWay assets.
``Vodafone doesn't have a proposal on the table, nor is it in formal negotiations on the subject,'' Pestana said. If OniWay decides not to start its operations, ``Vodafone always said it would be willing to study that scenario.''
Representatives of the other three companies involved declined to comment or weren't immediately reachable.
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sonae.com, EDP Gain After Report of OniWay Agreement (Update1)
By Jim Silver
Lisbon, Nov. 14 (Bloomberg) -- Sonae.com SGPS SA, Vodafone Telecel-Comunicacoes Pessoais SA and Portugal Telecom SGPS SA rose on a report the three wireless phone companies will buy out a rival, easing competition in the Portuguese market.
OniWay, a joint venture led by EDP, is close to agreeing to sell its assets to Portugal's three wireless phone companies for about 180 million euros ($181 million), Web site Negocios.pt reported late yesterday, citing no one.
If true, ``it's good for everyone,'' said Pedro Rodrigues, a fund manager at Lisbon's Finivalor. ``It's good for EDP, because it stops spending money, and it's good for the others, because there's one less operator.''
Sonae.com gained 8 cents, or 4.6 percent, to 1.81 euros at 12:30 p.m. in Lisbon. Telecel rose 21 cents, or 2.8 percent, to 7.79 euros, and Portugal Telecom added 10 cents, or 1.7 percent, to 6.14 euros. EDP-Electricidade de Portugal SA, owner of the start-up operator, rose 2 cents, or 1.2 percent, to 1.64 euros.
Analysts and industry executives say Portugal can't sustain four mobile operators because 85 percent of the population already has a mobile phone. Of the three existing operators, only two, Portugal Telecom SGPS SA's TMN unit and Vodafone Telecel- Comunicacoes Pessoais SA, are making money.
Vodafone spokeswoman Luisa Pestana said her company wasn't negotiating to buy OniWay assets.
``Vodafone doesn't have a proposal on the table, nor is it in formal negotiations on the subject,'' Pestana said. If OniWay decides not to start its operations, ``Vodafone always said it would be willing to study that scenario.''
Representatives of the other three companies involved declined to comment or weren't immediately reachable.
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