BNDES to auction off 15% stake in Telemar Participacoes - Oi's controller

13 Jul 2009

Brazilian state-run development bank BNDES plans to hold an auction for a 15% voting stake in Telemar Participacoes, the holding company that controls Brazilian telco Telemar Norte Leste (Oi), by the end of this month, local daily Folha de S Paulo reported. It is understood the reserve price has been set at BRL824 million (USD409 million) and that although the contest in open to anyone, local pension funds Petros and Funcef are widely tipped to buy the shares at the minimum asking price. The paper notes that Petros and Funcef, the employee pension funds for Brazil’s government-backed oil company Petrobras and federal savings bank Caixa Economica Federal (CEF), respectively, are both shareholders in Telemar. Upon completion of the auction, BNDES’s equity stake in the holding company is expected to fall to 16.89% from 31.60%.

Brazil, Oi