M&A news: Long-distance calls

Nov 1, 2013

A new, Brazil-based communications giant is in the making as Oi and Portugal Telecom consolidate their alliance

By Ben MillerFor most of the past few months the talk of the telecom world was América Móvil’s move for Dutch Royal KPN. However, Oi, Brazil’s biggest phone company, and Portugal Telecom (PT) surprised markets by agreeing to turn their reciprocal minority partnerships into a full merger.  With minority investors and analysts skittish, it is anything but a done deal. Oi estimates the transaction will generate synergies of 5.5 billion reais ($2.5 billion) in net present value terms — though analysts are skeptical about the savings involved — and a simplification of Oi’s shareholding...

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