BrT refutes talk of imminent Oi merger announcement

14 Jan 2008

Brazil’s third largest telecoms operator, Brasil Telecom (BrT), has rejected press reports saying it is in merger talks with its larger rival Oi (formerly known as Telemar). BrT’s public announcement follows growing press speculation that a BRL4.8 billion (USD2.7 billion) takeover of the company by Oi could be brokered within weeks, creating the largest telco in the country with fixed line operations in virtually all 27 Brazilian states and revenues which would have totalled USD12 billion in the first nine months of 2007. Reuters writes that Brasil Telecom has issued a statement in which its controlling shareholders, Citigroup and several Brazilian pension funds, have confirmed that while they have hired financial advisers ‘to evaluate strategic alternatives’ for BrT, no agreements have been made and the evaluation process remains at the preliminary stage.

Brazil, Brasil Telecom (BrT), Oi