Isabel dos Santos, multi-millionaire daughter of Angola's tyrannical president, enters the fray to control Portugal Telecom.
After the firm offer from French telecoms group Altice and that of several international funds, Isabel Dos Santos has said she is interested in a solution that defends the "national interests" of Portugal Telecom. For ‘national’ read ‘self.’
Altice made an offer last weekend to buy PT for €7.025 billion with various conditions, and on Wednesday the investment fund Apax, Bain and CVC bid €7.035 billion.
The Apax bid is likely to receive the support of the government and those PT shareholders who have the power to block the sale, as does Novo Banco and, indirectly, the Bank of Portugal.
Portugal’s Banco BPI claims that, if successful, the British fund Apax and its partners would suit PT’s shareholders better than the Altice bid,
"Apax and its partners have a great advantage over Altice. The process of acceptance by the market regulators would be much faster.”
In the case of Altice, the company already owns Portuguese TV operator Cabovisão which may lead to protracted approval for the acquisition.
The Brazilian operator OI which controls PT and which wants a quick sale to enable it to use the funds to expand in its domestic market and pay off debts, faces a complex scenario.
There is Unitel in Angola, controlled by Isabel dos Santos who has made clear that she wants and is entitled to PT assets based in Africa as she is a shareholder in PT.
A shareholders' meeting of Unitel held on Tuesday in Luanda approved the adoption of legal action against OI for having agreed as part of its merger with PT various actions that break an earlier agreement signed in 2000 between PT and Unitel.
Besides her shareholding in PT, Isabel dos Santos, through the company Zopt in which she holds 50.1%, has an interest in Portuguese operator NOS, a direct competitor of PT for pay-TV, where it controls the market.
NOS, owned by Zon and Optimus, partnered by the Portuguese group Sonae, was blocked in a 2006 takeover bid for Portugal Telecom.
Isabel dos Santos, along with the Acevedo family, owners of Sonae, announced that, for the sake of the "national interest" she could be interested in buying PT.
"Zopt and Sonae state their availability to find a solution that in open collaboration with stakeholders ensures the necessary collaboration to promote the defence of the national interest."
Isabel dos Santos’ initiative would undoubtedly be welcomed by the Portuguese political and business hierarchy, but it is close to impossible under market competition rules.
PT and NOS together would control 87% of pay TV, 63% of mobile phone customers, 85.4% of fixed telephony and 84% of Internet accounts.
