Citing strong yearly earnings and better than estimated synergies in the company’s wireless telephony business, Portugal Telecom (PT) on Tuesday rejected as inadequate an improved offer of €10.50 (U.S. $13.50) per share submitted by the telecommunications subsidiary of the Portuguese conglomerate Sonae. Sonae’s initial bid of €11.1 billion (U.S. $12.8 billion), or €9.50 per share, was launched last year, and PT turned down that offer on grounds that it undervalued the company. PT, which operates Portugal’s fixed line telephony network as well as TV Cabo, the nation’s dominant cable network, confirmed that it is instead pursuing a remuneration package that, from 2006 to 2009, “would amount to €6.2 billion, or €5.6 per share, or more than half of [Sonae’s] offer, while allowing shareholders to retain 100% ownership of the significant value creation opportunity available in PT.” As such, PT CEO Henrique Granadiero said, “we are recommending to our shareholders to not sell their shares at the price of €10.50.” Although Sonae is prohibited under Portuguese securities law from raising its offer again, sources say that PT shareholders are scheduled early next month to vote on the lifting of a 10% limit to shareholder voting rights—a key step that could allow Sonae’s bid to proceed. If shareholders vote against the change, Sonae would be barred from launching another bid for PT for at least 12 months.