Portugal will comply with a The European Court of Justice, Europe’s highest court, ruling outlawing its golden share in the country’s dominant phone company, Portugal Telecom’s (PTC), Vivo and Telefonica deal a Portuguese government official told Reuters.
“Portugal will of course comply with the ruling. The court acknowledges that there are reasons for special rights in companies and the policy of the Portuguese government will be to pursue this point in line with the court ruling,” the official told Reuters.
Portugal stunned investors last week by using its golden share to block a shareholder vote overwhelmingly in favour of selling Portugal Telecom’s (PTC) stake in Vivo (VIVO4), Brazil’s largest mobile phone company, to its joint venture partner, Spain’s Telefonica (TEF), for 7.15 billion euros ($9.6 billion). Today, European Court of Justice said, Portugal’s golden share in the Portugal Telecom (PTC), breached European Union rules on the free movement of capital.