Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
ANNUAL GENERAL MEETING OF SHAREHOLDERS
PORTUGAL TELECOM, SGPS S.A.
27 April 2007
PROPOSAL OF THE BOARD OF DIRECTORS
ITEM 13 ON THE AGENDA:
(To resolve on the acquisition and disposal of own bonds and other own securities)
Whereas:
A) It is convenient to the Company and its dependent companies to be able to continue to make use, in accordance with the law and current practice applicable to each company, the possibilities inherent in transactions with own bonds;
B) Bearing in mind the characteristics of the bonds that can be issued by the Company, including in connection with the issuance of convertible or exchangeable securities made by the Company or any of its dependent companies;
We propose that it be resolved:
1) To approve, in any case where approval is legally required and subject to a resolution of the management board, the acquisition of own bonds, already issued or to be issued, in any form, under the following terms:
a) Maximum number of bonds to be acquired: a number corresponding to the total of each issuance, without prejudice to the limits stipulated by law, and deducting any transfers made;
b) Term during which the acquisition may be made : Eighteen months, as of the present resolution;
c) Forms of acquisition: acquisition, in any form, notably original acquisition or derivative acquisition for consideration on a regulated market in which the securities are listed or
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acquisition over-the-counter, whether or not made through financial intermediaries, besides
the cases of conversion in the case of convertible bonds, and which may be followed by
cancellation;
d) Minimum and maximum consider ation for the acquisitions: the consideration in
derivative acquisitions should be within an interval of fifteen percent less than the lowest
trading price and fifteen percent higher than the average trading price of the bonds to be
acquired on the regulated markets where the acquisition is made during the 5 sessions
immediately preceding this one;
In case of an issuance not listed on a domestic regulated market and placed in the
international market, that interval shall be with reference to the average purchase and sale
price quoted in the AIBD’s (Association of International Bond Dealers) Bond Book in the week
prior to the acquisition, regardless of whether the bonds are listed on a foreign exchange or
not;
In case of an issue neither listed nor referenced in said Bond Book, that interval shall be with
reference to the estimated value calculated by a financial intermediary or independent
consultant appointed by the Board of Directors;
In the case of an acquisition in connection or in compliance with the conditions of issuance
of other securities, or of a contract related to such issuance, the price shall be that arising
from the terms of such issuance or contract;
e) Time of acquisition: to be determined by the management board, having regard to the
situation of the market and the convenience or obligations arising from the law, contract or
issuance of other securities leading to the acquisition, and to be effected one or more times
and in such proportions as the management board may determine.
2) To approve, other than in the cases of conversion or redemption and subject to the specific authority
of the management board, the disposal of own bonds including those that may have been acquired,
subject to resolution of the management body and under the following terms:
a) Minimum number of bonds to be disposed of: the number corresponding to the minimum
block which at the time of disposal is legally stipulated for the bonds of the Company, or
such lesser quantity as may be sufficient to fulfil any obligation undertaken by virtue of the
law, a contract or the issuance of other securities;
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b) Term during which the disposal may take place: eighteen months beginning on the date of this resolution;
c) Form of disposal: disposal for consideration in any form, namely sale or exchange, to be made on a regulated market or over-the-counter in favour of certain entities designated by the management board (in observance, in the case of bonds convertible into shares, of the principle of equality of shareholders as provided by law) or, in case of a disposal in connection with or for implementation of a stock option programme or fulfilment of obligations undertaken arising from the law, the issuance of other securities or a contract, including a contract related to the issuance of convertible or exchangeable securities or to the conversion thereof, according to the relevant terms and conditions;
d) Minimum Price: no more than fifteen percent below the prices stated in paragraph 1, d) of this resolution, as applicable, or such other price as may be stipulated in accordance with the terms and conditions of a stock option programme or issuance of other securities, including convertible securities, or of a contract related to such programme, issuance or conversion, where the disposal is made in connection or in compliance with the respective terms;
e) Time of disposal: to be determined by the management board, taking into account the market conditions and the convenience or obligations undertaken, and to be made in one or more times and in such proportions as the management board may stipulate.
Lisbon, 21 March 2007.
The Board of Directors,
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PORTUGAL TELECOM, SGPS, S.A.
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| By: |
/S/
Nuno Prego
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Nuno Prego
Investor Relations Director
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This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.