Citigroup, pension funds want control of Brasil Telecom in 30 days

1 Sep 2005

According to local newspapers, US-based financial group Citigroup and three Brazilian pension funds have revealed that they hope to secure control of fixed line telco Brasil Telecom within 30 days. 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, but earlier this month the Brazilian national audit court (TCU) stopped the deal. Citigroup and the pension funds are hoping to make use of a general meeting for Brazil Telecom shareholders to reverse the decision.

Brazil, Brasil Telecom (BrT)