Vivo restructures units

6 Dec 2005

Brazilian cellco Brasilcel, which operates under the brand name Vivo, has revealed plans to restructure its five stock exchange listed units into a single operation. The cellco, which is owned by Telefonica Moviles and Portugal Telecom, will merge TCP, Tele Centro Oeste Participacoes, Tele Sudeste Celular Participacoes, Tele Leste Celular Participacioes and Celular CRT Participacoes into Telesp Celular Participacoes, which it will subsequently rename Vivo Participacoes. The operator’s board approved the restructuring on 4 December, and US investment bank Merrill Lynch was hired to advise on aspects of the transaction. Vivo hopes that the move will simplify its current organisational structure, reduce costs and create value for shareholders.

Brazil