Four of Iberia’s largest law firms – Garrigues, Cuatrecasas, PLMJ and Vieira de Almeida & Associados – are being lined up to defend Portugal Telecom from a E10.7bn unsolicited bid from Sonae.

A successful deal would represent the largest merger by deal value ever in the Portuguese market and has also prompted speculation that other major European companies, including Banco Espirito Santo and Spanish giant Telefonica, will table rival bids.