Telemar cancels meeting for a third time

28 Nov 2006

Brazil’s largest telecoms company Tele Norte Leste Participacoes (Telemar) cancelled a shareholder meeting scheduled for Monday 27 November to vote on a capital restructuring, after the courts asked the Brazilian securities regulator (CVM) for more details on the voting rules. The decision to postpone the meeting has once again thwarted attempts by its controlling shareholders to approve Telemar’s reorganisation plan. On the previous two occasions – the most recent of which being 24 November – the meeting took place, but failed to attract enough shareholders to make it quorate. Telemar’s owners plan to exchange all the company’s preferred stock, the company’s most-traded class of shares, for voting stock, but some investors have baulked at the suggestion.

Brazil, Oi