July 20, 2010 / 8:09 AM / in 9 years

UPDATE 1-PT denies has deal to buy stake in Brazil's Oi

* Says has no deal to acquire equity stake in Oi

* Spanish paper had reported pre-agreement valid to Jul 30

(Adds PT statement)

LISBON, July 20 (Reuters) - Portugal Telecom PTC.LS denied on Tuesday a media report that it has entered a deal to buy a stake in Brazil’s fourth-largest mobile operator, Oi.

“Following news published today in the Spanish newspaper El Economista, Portugal Telecom hereby clarifies that it has not signed any pre-agreement or agreement with the objective of acquiring an equity stake in Oi,” the Portuguese company said.

The newspaper had said, citing financial sources, that PT had signed a pre-agreement with Oi valid until the end of next week to buy a stake once it had sold its share in Brazil’s largest mobile operator, Vivo VIVO4.SA, to its joint venture partner Telefonica (TEF.MC).

Telefonica’s 7.15 million-euro ($9.24 million) offer to buy PT’s stake in Vivo expired on Friday. A majority of PT shareholders last month voted in favour of accepting the offer but the Portuguese government used its golden share in the company to veto the deal.

Portugal Telecom shares closed 1.75 percent euros higher at 8.16 euros before the statement, outperforming the broader market .PSI20 which ended 0.49 percent higher. ($1=.7739 euros) (Reporting by Shrikesh Laxmidas and Sarah Morris; Editing by Greg Mahlich)

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