Court stops Citigroup/pension funds deal

19 Aug 2005

The Brazilian national audit court (TCU) has stopped a deal between Citigroup and three pension funds over their stakes in Brasil Telecom. The four parties signed an agreement in March, which included a put option under which the pension funds agreed to buy Citigroup’s shares in Brasil Telecom if they were not sold before 2007. However, complaints about potential losses to pension fund members prompted the put option to be questioned, and the deal has now been stopped, meaning that Citigroup may have to sell its stake earlier than planned for a lower price.

Brazil, Brasil Telecom (BrT)