PT, Oi discussing merger?

According to a report by Brazilian daily Folha de Sao Paulo, shareholders of Portugal Telecom (PT) and Brazilian telecoms group Oi SA are discussing a potential merger of the two companies. A combination of the businesses – which has not been confirmed by PT or Oi – would create an operator with 101 million customers and annual revenues of BRL64 billion (USD28.3 billion), with a presence in Portuguese-speaking countries. Oi was formed through the restructuring of Telemar Participacoes’ former operating divisions Brasil Telecom, Tele Norte Leste Participacoes, Coari Participacoes and Telemar Norte Leste.