M&A news: Long-distance calls
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
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