Telefonica on Saturday pulled out of negotiations to acquire a euro7.15 billion stake in Brazil's leading cell phone company Vivo

MADRID Spanish telecommunications giant Telefonica on Saturday pulled out of negotiations to acquire a euro7.15 billion ($9.3 billion) stake in Brazil’s leading cell phone company Vivo. Telefonica said in a statement to Madrid’s stock exchange early Saturday that the deal fell through after Portugal Telecom’s board of directors failed to accept the Spanish company’s offer by the deadline.”The deal has been extinguished,” Telefonica said.Though PT shareholders voted two weeks ago to accept the offer, the Portuguese government used special voting rights to block the sale, citing national interests.The European Union’s Court of Justice then ruled that the Portuguese government’s blocking of the deal was illegal.

Telefonica and PT each own 50 percent of Brasilcel, a Dutch holding company which owns 60 percent of Vivo. The Spanish company’s offer was to buy PT’s half of Brasilcel and following the court’s finding it extended the offer until July 16.Telefonica is eager to expand its significant presence in the fast-growing Latin American sector, where it has an important foothold in burgeoning markets such as Chile, Colombia, Mexico, Peru and Venezuela and Brazil.

Brazil’s economy is booming, in contrast to Telefonica’s home territory of Spain which is struggling to emerge from nearly two years of recession.PT is Portugal’s largest telecommunications operator and the Portuguese government demanded it maintain a foothold in Brazil as it did not want to lose PT’s Brazilian revenue stream.

Telefonica SA is a much larger company than Portugal Telecom SGPS SA, employing about 237,000 people compared with the around 32,000 employees at its Portuguese counterpart.Telefonica would not comment Saturday on the possibility of legal action following the collapse of the deal.Calls to Portugal Telecom on Saturday went unanswered.Telefonica shares fell 1.55 percent to euro16.16 on Friday while Portugal Telecom directors were still considering the deal. Portugal Telecom shares slid 4.53 percent to euro8.08 per share. (AP)

Seven Cuban political prisoners and members of their families arrived in Madrid on Tuesday

MADRID Seven Cuban political prisoners and members of their families arrived in Madrid on Tuesday, the first of a group of inmates the government in Havana has promised to release, an official said.The prisoners arrived on two flights that left Cuba’s capital Monday night, a Spanish Foreign Ministry spokesman said. Together with their families they numbered around 35, the official said.It was the start of a mass liberation of dissidents promised by Cuba – actions once seemed unthinkable.

Cuba says it will free a total of 52 inmates after Cuba’s Roman Catholic Church reached an agreement last week with the government to liberate those still imprisoned from a 2003 crackdown that jailed 75 activists.Spain, which took part in the negotiations, agreed to accept the first group.The Foreign Ministry official was speaking on condition of anonymity in keeping with ministry regulations.

He said six former inmates – Lester Gonzalez, Omar Ruiz, Antonio Villarreal, Julio Cesar Galvez, Jose Luis Garcia Paneque and Pablo Pacheco – were aboard an Air Europa flight that arrived at 12:49 p.m. (1049 GMT, 7:49 a.m. EDT) at Barajas airport.A seventh released prisoner, identified as Ricardo Gonzalez Alfonso, arrived on an Iberia flight about an hour later.

The seven were expected to come through arrivals together after the second plane landed. It was not immediately known how many of them would speak to the media.”They have come from jail to the plane. I feel a mix of joy and pain because to live in freedom one must leave the country,” said Blanca Reyes, representative in Madrid for the Cuban dissident group Ladies in White, who was at the airport.

One of the released, Omar Ruiz, who had been serving a 12-year sentence for treason, told The Associated Press on Monday he and six other former inmates were driven in a van to Havana’s Jose Marti International airport, where they were reunited with relatives in a special waiting room. All were then escorted to an Air Europa flight bound for Madrid.He said Cuban officials were watching them.”That’s why I won’t consider myself free until I arrive in Spain,” he said.

The government of Raul Castro has pledged to free 52 Cubans who international human rights group say were jailed for their political beliefs. That process is expected to take three or four months and is part of a landmark deal last week between Cuban authorities and the island’s Roman Catholic Church that was brokered by Spanish Foreign Minister Miguel Angel Moratinos.Spanish authorities have said that once the Cubans arrive, they will not be required to stay in Spain and will be free to head elsewhere.

The church says another 13 opposition activists and dissidents behind bars will go free soon. It was not known if subsequently released prisoners will be allowed to stay in Cuba or will be forced to go to another country. Both the U.S. and Chile have offered to grant them asylum, in addition to Spain.(AP)

Airbus will reduce its exposure to the troubled A400 military transport plane project

MADRID Airbus will reduce its exposure to the troubled A400 military transport plane project unless the governments that ordered it reach a decision soon on financing cost overruns, an official said Thursday.Airbus Military spokesman Jaime Perez-Guerra said time is of the essence because Airbus parent company EADS presents its 2009 earnings on March 9.He said EADS needs a decision so it can book its share of the cost overruns in its 2009 financial results, rather than carry over uncertainty into the first quarter.”We are squeezed, absolutely squeezed,” Perez-Guerra told The AP.

Perez-Guerra said EADS is not setting a new deadline for a decision but insists one must be all but completed very soon. If not, he said the company will take measures that could include diverting money, personnel and equipment to other projects.”EADS really has to see that an agreement is practically sealed,” he said.Airbus CEO Tom Enders gave the warning Wednesday as he met with union leaders during a visit to an Airbus plant outside Madrid, the spokesman said.

France said this week the seven nations that have ordered the plane have agreed to commit an extra euro2 billion ($2.75 billion) in funding. France is proposing that governments make available an extra euro1.5 billion in reimbursable loans. The project is nearly four years behind schedule.EADS has reduced its demands for extra funding to euro4.5 billion – but the government proposal still falls euro1 billion short.The four-engine turboprop military plane had its maiden flight in December. The price tag for the 180 planes ordered was fixed at almost euro20 billion in the initial contract in 2003. Germany is the biggest costumer with 60 aircraft ordered, and France wants 50.The A400M is seen as occupying an important niche market between the Lockheed Martin C-130J Hercules, which carries only half the payload, and Boeing’s C-17 Globemaster III, which is larger, costlier, and less tactically versatile.The countries that have ordered the planes are Belgium, Britain, France, Germany, Luxembourg, Spain and Turkey.(AP)

world celebrations for the new years

Taipei 101

PARIS jazzed up the Eiffel Tower with a multicolored, disco-style light display as the world basked in New Year’s festivities with hopes that 2010 and beyond will bring more peace and prosperity.From fireworks over Sydney’s famous bridge to balloons sent aloft in Tokyo, revelers across the globe at least temporarily shelved worries about the future to bid farewell to “The Noughties” – a bitter-tinged nickname for the first decade of the 21st century playing on a term for “zero” and evoking the word naughty.In New York City, hundreds of thousands of revelers gathered in chilly weather in Times Square to usher in the new decade. Organizers were preparing 3,000 pounds (1,360 kilograms) of confetti that will be scattered when the New Year’s Eve crystal ball drops at midnight.Fireworks were set off at about 6 p.m. and the gigantic ball was lowered into place in preparation for midnight. Many people wore conical party hats and 2010 glasses that blinked colorfully, and some were jumping up and down to keep warm – the National Weather Service said the temperature will be in the low 30s and forecast snow for around midnight.Las Vegas prepared to welcome some 315,000 revelers with fireworks from casino rooftops, a traffic-free Las Vegas Strip and toasts at nightclubs from celebrities including actress Eva Longoria and rapper 50 Cent.

Sydney Harbour

Even as some major stock market indexes rose in 2009, the financial downturn hit hard, sending many industrial economies into recession, tossing millions out of work and out of their homes as foreclosures rose dramatically in some countries.”The year that is ending has been difficult for everybody. No continent, no country, no sector has been spared,” French President Nicolas Sarkozy said on national TV in a New Year’s Eve address. “Even if the tests are unfinished, 2010 will be a year of renewal,” he added.

German Chancellor Angela Merkel warned her people that the start of the new decade won’t herald immediate relief from the global economic ills. South Africa’s president, Jacob Zuma, was more ebullient, saying the World Cup is set to make 2010 the country’s most important year since the end of apartheid in 1994.At midnight in Rio de Janeiro, about 2 million people gathered along the 2.5-mile (4 kilometer) Copacabana beach to watch a huge fireworks display and listen to dozens of music acts and DJs.

The multitudes came mostly dressed in traditional white clothing, a nod to the Afro-Brazilian religion of Candomble but a custom followed by nearly everyone as it is thought to bring peace and good luck for the coming year.Officials said about 12,000 police were on duty during the New Year’s Eve party in and around Copacabana to provide security.Dressed in white and holding a glass of champagne in his hand, visitor Chad Bissonnette, 27, a nongovernmental group’s director from Washington, D.C., said, “This year was the toughest I’ve experienced – for the first time as an American I saw many friends lose jobs and businesses in my neighborhood close regularly.”

Australian Prime Minister Kevin Rudd hailed events in 2009 like the inauguration of the United States’ first black president, and international attempts to grapple with climate change and the global financial crisis.”The great message from 2009 is that because we’ve been all in this together, we’ve all worked together,” Rudd said in a New Year’s message.Australia got the some of the festivities rolling, as Sydney draped its skies with explosive bursts of crimson, purple and blue to the delight of more than 1 million New Year revelers near the harbor bridge.Concerns that global warming might raise sea levels and cause other environmental problems were on the minds of some as the year ended.

Venice revelers rang in the New Year with wet feet as high tide on its archipelago peaked just before midnight to flood low-lying parts of the city – including the St. Mark’s Square.The last year also offered its reminders of the decade’s fight against terrorism, wars in Iraq and Afghanistan, and more recently, rising militant violence in Pakistan.Prime Minister Gordon Brown of Britain, in a statement Wednesday, suggested that terrorism book-ended the decade, with the Sept. 11, 2001, attacks in the United States, and foiled plot by a Nigerian man to set off explosives on a U.S.-bound airliner on Christmas Eve.

“In late December we were reminded at this decade’s end, just as we were at its beginning, that there is a terrorist threat which puts our safety and security at risk and which requires us to take on al-Qaeda and the Taliban at the epicentre of global terrorism,” he said.

The American Embassy in Indonesia warned of a possible terrorist attack on the resort island of Bali on New Year’s Eve, citing information from the island’s governor – though local security officials said they were unaware of a threat.In a more upbeat theme, the Eiffel Tower was decked out for its 120th anniversary year with hundreds of multicolored lights along its latticework. It was seemingly retro in style, but decidedly 21st century as it showered the Iron Lady in a light show billed as more energy-saving than its usual sparkling lights.

Police blocked off the Champs-Elysees to vehicle traffic as partygoers popped champagne, exchanged la bise – the traditional French cheek to cheek peck – or more amorous kisses to celebrate the New Year.Spain rang in the start of its six-month presidency of the European Union with a sound and light show illuminating Sol square in Madrid and images from the 27 member states projected onto the central post office building.Partiers braved the cold – and a shower from sparkling cava wine bottles – in traditional style by eating 12 grapes, one with each tolling of the city hall bell.Despite frigid temperatures, thousands gathered along the River Thames for fireworks were fired from the London Eye attraction just as Big Ben struck midnight – an hour after continental western Europe.

Europe and the Americas may have partied harder than Asia. Islamic countries such as Pakistan and Afghanistan use a different calendar; China will mark the new year in February.Still, in Shanghai, some people paid 518 yuan ($75) to ring the bell at the Longhua Temple at midnight and wish for new-year luck. In Chinese, saying “518” sounds like the phrase “I want prosperity.”

Saudi Arabia is one of the few countries where New Year’s Eve is not celebrated publicly. Clerics in the ultraconservative country say Muslims can only observe their faith’s feasts of Eid al-Fitr and Eid al-Adha. For them, any other occasions are considered innovations that Islam rejects.Unlike many Islamic countries where pigs are considered unclean, New Year’s in Austria just isn’t complete without a pig-shaped lucky charm – and stalls selling the little porkers did a good business Thursday. Some are made of marzipan or chocolate; others come in glass, wood, rubber or soap.

Herbert Nikitsch of the University of Vienna’s Institute of European Ethnology said the porcine phylactery may originate from the fact that pigs represented food and sustenance for farmers in preindustrial times.Some festivities went awry.In the Philippines, hundreds of people were injured by firecrackers and celebratory gunfire during the celebrations. Many Filipinos, largely influenced by Chinese tradition, believe that noisy New Year’s celebrations drive away evil and misfortune – but some carry that belief to extremes.At Zojoji, one of Tokyo’s oldest and biggest Buddhist temples, thousands of worshippers released clear, helium-filled balloons to mark the new year. Nearby Tokyo Tower twinkled with white lights, while a large “2010” sign glowed from the center.

Tokyo’s Shibuya area, known as a magnet of youth culture, exploded with emotion at the stroke of midnight. Strangers embraced spontaneously as revelers jumped and sang.In Istanbul, Turkish authorities deployed some 2,000 police around Taksim Square to prevent pickpockets and the molestation of women that have marred New Year celebrations in the past. Some officers were under cover, disguised as street vendors or “even in Santa Claus dress,” Istanbul Gov. Muammer Guler said.In Stonehaven, on Scotland’s east coast, the fireballs festival – a tradition for a century and a half – saw in the New Year. The pagan festival is observed by marchers swinging large, flaming balls around their heads. The flames are believed to either ensure sunshine or banish harmful influences.In contrast to many galas worldwide, the Stonehaven Fireballs Association warned those attending not to wear their best clothes – because “there will be sparks flying along with smoke and even whisky.” (AP)