Oi rejects PT offer; Portuguese watchdog wants explanation

5 Jun 2007

Brazilian fixed line operator Oi (formerly Telemar) has dismissed a preliminary takeover offer from Portugal Telecom (PT). In a statement, the Brazilian carrier confirmed its shareholders had been approached by the Portuguese firm but it was not holding talks either with the company or with any other financial or strategic investors. Last week PT denied press rumours that it had made an approach to Oi, but later PT’s Henrique Grandeiro confessed that discussions had taken place and that he was keen to strike a ‘friendly agreement’ with Oi.

In a related story, the Portuguese stock market regulator the CMVM has requested that PT submit a ‘full explanation’ regarding both the reported talks to buy Oi and, separately, to comment on rumours of a reported merger between Oi and Brasil Telecom. The Jornal de Negocios newspaper reports that the CMVM has demanded that PT clarify possible mergers and acquisition movements in Brazil, following reports that PT was readying a bid for Oi.

Portugal Telecom holds a 50% stake in Brazil’s largest mobile operator Vivo, a joint venture with Spain’s Telefónica.

Brazil, Oi