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Oi said to favour Altice bid for PT Portugal; binding bids expected by 28 Nov

20 Nov 2014

Brazilian telecoms giant Oi SA is believed to favour the EUR7.025 billion (USD8.797 billion) takeover bid submitted by Luxembourg-based Altice Group for the ‘PT Portugal Telecom SGPS’ (‘PT Portugal’) holding company, despite private equity funds Apax Partners and Bain Capital offering EUR50 million more for the unit. According to Brazilian business daily Valor Economico, Oi is in a hurry to complete the sale, and has been dissuaded by the structure of the Apax/Bain offer; the enterprise value includes two separate EUR400 million deferred payments that depend on the business’ future performance. Meanwhile, Bloomberg has reported that Oi has called for binding bids by 28 November.

In related news, the parallel EUR1.2 billion offer for a different holding company, ‘Portugal Telecom SGPS’, from Terra Peregrin – a Portugal-based holding company controlled by Isabel dos Santos, the daughter of Angola’s president, Jose Eduardo dos Santos – has also been privately dismissed by Oi. The Brazilian firm believes that the deal would overcomplicate its ongoing restructuring process.

The Altice deal would unwind the troubled, long-running ‘CorpCo’ merger between Portugal Telecom (PT) and Oi SA, which was first unveiled in October 2013, but has yet to be concluded.

Portugal, Altice International, Next Alt, Oi, Pharol (formerly Portugal Telecom SGPS [PT SGPS])

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