UPDATE 2-State bank CGD sells Portugal Telecom stake at small discount

Thu Oct 24, 2013 3:27pm BST

Quotes

   

* Sold at 3.48 euros a share - 2.8 pct discount to Wednesday's close

* PT shares drop 2 pct after suspension (Updates with sale completed, share price)

LISBON Oct 24 (Reuters) - Portuguese state-owned bank Caixa Geral de Depositos has sold into the market its outstanding 6.11 percent stake in Portugal Telecom for 190 million euros in a move aimed at reducing the bank's non-core assets, CGD said on Thursday.

The sale price of 3.48 euros a share was at a discount of 2.8 percent to Portugal Telecom's closing market price on Wednesday of 3.583 euros.

The share price fell to around 3.50 euros a share when trading resumed on Thursday, and last traded at 3.503 euros at 1425 GMT.

Trading in the shares had been suspended on Thursday awaiting the terms of the sale, which comprised 54.77 million shares offered via an accelerated bookbuilding process. Credit Suisse and CGD's investment bank Caixa Banco de Investimento acted as joint bookrunners.

PT's share price has jumped from near all-time lows of 2.71 euros in July, boosted most recently by the group's plan announced earlier this month to merge with Brazil's Grupo Oi SA and form a new company with more than 100 million subscribers.

The state-owned bank has also been selling off other assets like its healthcare arm to comply with the terms of Portugal's European Union/IMF bailout. It is now in the process of privatising its insurance unit. (Reporting By Andrei Khalip; Editing by Greg Mahlich)