Minority shareholders fail to block Oi merger vote

Brazil’s securities watchdog CVM has rejected a move by a group of minority investors of wireless operator Oi to block today’s planned shareholder assembly. As reported by CommsUpdate earlier this week, the group, led by Tempo Capital, petitioned CVM to step in and stop the meeting, claiming that larger shareholders did not have the right to vote on the proposed merger of Oi and its main investor Portugal Telecom (PT). Minority shareholders say the terms of the deal favour larger investors and that those with smaller interests will lose out through the dilution of their stakes. Oi shareholders are to vote today on the financial terms of the merger.