Telemar, BrT discuss break-up fee if takeover fails, paper says

19 Mar 2008

Brazilian telecoms operator Telemar Participacoes, which is in takeover talks to acquire rival fixed line player Brasil Telecom Participacoes (BrT), could agree to a break-up fee of around BRL100 million (USD58 million) should the talks fall through, reports Bloomberg citing an article in the O Estado de Sao Paulo newspaper. The two parties are discussing the terms of the deal, including a break-up fee, and on how best to reorganise the shareholding structure, the paper said. Telemar could pay as much as BRL5.2 billion to purchase a controlling stake in BrT, but if the two sides fail to reach agreement on the deal by the end of this month, Telemar may abandon the takeover, the newspaper said.

Brazil, Brasil Telecom (BrT), Oi