PT To Resume Board Meeting Over Vivo Stake Sale Friday -Source

Portugal Telecom SGPS SA's (PT) board decided to extend its meeting to Friday to decide whether to accept Telefonica SA's (TEF) offer to buy the Portuguese company's stake in Vivo Telecomunicacoes SA (VIV), a person close to the situation said.

"The meeting is over and it will continue tomorrow (Friday)," the person said.

The board of Portugal Telecom met Thursday to discuss Telefonica's EUR7.15 billion bid for its stake in Brasilcel, a 50-50 joint venture both companies share that controls 60% of Brazil's Vivo.

Another person close to the situation said earlier this week Telefonica and Portugal Telecom have been in talks since last Friday to reach an agreement over the sale that would allow PT to continue its presence in Brazil, a key market for both companies.

Telefonica is also slated to hold a board meeting Friday, the same day the Spanish company's bid for PT's Vivo stake expires.

-By Jason Sinclair, Dow Jones Newswires; [phone]; [e-mail];