BrT minority shareholders reject Oi offer

17 Jun 2010

Minority shareholders of Brazilian telecoms operator Brasil Telecom (BrT) yesterday rejected a proposed share swap offer by parent group Tele Norte Leste Participacoes (TNL, or Oi) the country’s largest phone company. Oi’s offer would have seen BrT shares exchanged for shares in Telemar Norte Leste (TMAR), another company in the Oi group. In a joint statement the companies said: ‘Minority shareholders of common and preferred shares of BrT did not approve the proposal for new indirect share exchange ratios between BrT and TMAR, which would have been applied during the final step of the corporate reorganisation.’ In light of the development, any plans to simplify the group’s corporate structure have been put on hold indefinitely. According to TeleGeography’s GlobalComms Database, Oi purchased fellow operator BrT in 2008 in a deal worth BRL10 billion (USD5.6 billion).

Brazil, Brasil Telecom (BrT), Oi