Police to investigate Brasil Telecom ownership

29 Mar 2004

Federal prosecutors have ordered the police to open an inquiry into the ownership of regional operator Brasil Telecom following media reports that US venture Citigroup may own an undisclosed stake in the company. According to reports by Teletime News and the Financial Times, Citigroup’s share is held through Citicorp Venture Capital (CVC), a private equity company represented by Rio de Janeiro-based investment company Opportunity. Last month Telecom Italia, another Brasil Telecom investor, severed relations with Citigroup because of an ongoing dispute over control of the telco.