Telefonica has dropped its bid for Portugal Telecom’s stake in Vivo, declining PT’s request for an extension of the offer. PT said that talks with Telefonica had progressed in a constructive manner and it was committed to finding an agreement that satisfied all parties. However, on 16 July, the PT board requested a final extension of the validity of Telefonica’s offer until 28 July. In a statement to Spanish market regulator CNMV, Telefonica said that “since the board of directors of Portugal Telecom has not accepted the offer within its [16 July] deadline, such offer has expired”. Telefonica’s deadline had already been extended once after the Portuguese government blocked the deal at the PT shareholders meeting on 30 June by using its golden share in Portugal Telecom. The case was then brought before the European Court of Justice, which ruled that the use of the golden share is illegal as it breached EU rules on the free movement of capital.