Oi-Portugal Telecom merger Calling out

Oi-Portugal Telecom merger Calling out

Brazilian telecoms firm Oi and Portugal Telecom, which had been in a strategic alliance since 2010, agreed to merge in October 2013. PT’s shareholders would end up with 38% of the new company and Oi’s shareholders, with 62%. The transaction was contingent on a large capital increase. PT subscribed to the deal with assets, while shareholders of Oi’s controller Telemar also agreed to put in capital. The rest — at least 5 billion reais ($2.2 billion) — was to come from the market. Some minority investors felt that the controlling shareholders ultimately came out winning, at their expense. The valuation of the 5.7 billion reais in assets put in by Portugal Telecom was a major sticking point. “We

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