Sonaecom Shares Up After It Raises Bid for Portugal Telecom

Shares of Portugal’s Media and Telecommunications giant Sonaecom rose more than 15% Friday after it increased its offer for Portugal Telecom to 12 billion euros ($15.6 billion). On Friday shares of Portugal Telecom fell 0.4%.

Sanaecom boosted its cash offer to 10.50 euros per share in cash from 9.50 euros per share.

The company has been pursing Portugal Telecom since July of last year and said the 10.50 euros ($13.70) per share offer, represents "the price of peace" in what has become a bitter struggle for control of the former state-owned monopoly. Several Portugal Telecom shareholders have already rejected the new approach.

Last week Portugal telecom promised shareholders nearly $4.6 billion in special dividends if the bid was rejected.

If the deal is successful, Sonaecom will snag the country's market-leading mobile phone carrier TMN and supply about 70% of Portugal's mobile phone subscribers.