LISBON, Dec 23 (Reuters) - Angolan billionaire businesswoman Isabel dos Santos withdrew her 1.2 billion euro takeover bid for Portugal Telecom SGPS after market regulator CMVM ruled last week she had to raise the offer price, her company, Terra Peregrin, said on Tuesday.
Terra Peregrin, which launched the 1.35 euro a share offer last month, said in a statement that due to CMVM's decision it "decided to withdraw the offer after careful consideration".
CMVM earlier rejected arguments presented by Terra Peregrin for an exemption from the rule that dictates that the bidding price has to be at least the share's average price over the last six months.
Terra Peregrin had argued that July's debt default by Rioforte, a holding company whose debt is held by PT SGPS, had caused PT SGPS shares to plunge since July, making the rule inapplicable.
$1 = 0.8057 euros Reporting By Andrei Khalip