Telemar meeting fails to approve restructuring plan

14 Nov 2006

Monday’s shareholder meeting to approve Brazilian operator Telemar’s corporate restructuring plan ending without resolution, after insufficient numbers attended to make the meeting quorate, writes BNamericas citing local press reports. The company needed 50% plus one of preferential shareholders to attend, but only 29.17% of these shareholders turned up for the meeting in Rio de Janeiro. Telemar wants to simplify the structure of its units – Telemar Participações (TmarPart), Tele Norte Leste Participações (Tmar) and Telemar Norte Leste (TNL) – and bring its shareholders together under a single company called Oi Participações. However, the poor turnout did not surprise many analysts who pointed out that the plan includes a controversial share exchange programme whereby preferential shares (without voting rights) would be exchanged for ordinary ones.

Brazil, Oi