UPDATE 1-PT board has no decision on Vivo stake sale-sources

* Board ends meeting, no decision on stake sale

* Telefonica's 7.15 bln euro bid expires at midnight (Updates with background, PT share price)

LISBON, July 16 (Reuters) - Portugal Telecom's (PTC.LS) board ended a meeting on Friday without deciding whether to accept Telefonica's (TEF.MC) 7.15 billion euro bid for its stake in their Brazilian mobile venture Vivo VIVO4.SA, just hours before the offer was due to close, sources said.

"The meeting is over and there is no decision," one source close to the process said after two days of meetings. The deadline had been extended after the Portuguese government blocked the shareholder-backed deal two weeks ago by invoking its golden share in Portugal Telecom. [ID:nLDE65T0MI]

On Tuesday, Telefonica's chairman ruled out the option of extending the July 16 deadline, but the Spanish telecoms giant could take legal measures to get its way.

Portugal Telecom shares had closed 4.5 percent lower at 8.047 euros before the meeting.

Telefonica and Portugal Telecom, both battling flattening sales at home, jointly control more than 60 percent of Vivo, Brazil's largest mobile phone company, through their Brasilcel joint venture.

The Spanish group has long coveted full control of Vivo to merge the unit with its struggling Brazilian fixed-line unit Telesp and to keep pace with its arch rival in Latin America, Carlos Slim's America Movil (AMXL.MX), which is already integrating its fixed and mobile businesses across the region.

Telefonica sweetened its bid for PT's stake in Vivo a second time last month to 7.15 billion euros ($9.3 billion), hours before PT's shareholders met to vote on it.

But Portugal Telecom, counting Brazil as its only significant overseas market, has described selling Vivo as "amputating" its future, particularly since PT has few other assets abroad.

Backed by the Portuguese government, PT argued that the country's leading telecoms operator should retain Vivo to continue its presence in Portuguese-speaking Brazil, a fast-growing telecoms and Internet market.

Cabinet Minister Pedro Silva Pereira told a news briefing earlier on Friday the Portuguese government will maintain its veto on the sale of PT's stake unless Telefonica alters the terms of its bid.

Bankers said Telefonica could seek to dissolve Brasilcel, and then buy up Vivo shares in the open market. (Reporting by Sergio Goncalves. Editing by Robert MacMillan)