Portugal's state-owned bank Caixa Geral de Depositos will sell its outstanding 6.11 percent stake in Portugal Telecom in a private sale as part of plans to sell non-core assets, the bank said on Thursday.
The sale of 54.77 million shares will be carried out via an accelerated bookbuilding process aimed at certain investors.
The final terms of the offering are expected to be announced after the process is completed later on Thursday.
The state-owned bank has also been selling off other assets like its healthcare arm under the terms of Portugal's European Union/IMF bailout. It is now in the process of privatising its insurance unit.
Portugal Telecom shares closed at 3.583 euros on Wednesday. The stock was suspended from trading on Thursday, awaiting the terms of the sale.
The stock has jumped from near all-time lows of 2.71 euros in July, partly in response to the group's plan, announced earlier this month, to join forces with Brazil's Grupo Oi SA and form a new company with more than 100 million subscribers.
Credit Suisse and CGD's investment bank Caixa Banco de Investimento are acting as joint bookrunners in the equity sale, CGD said.
