Both Portugal Telecom and Oi have denied suggestions that the Lisbon-based incumbent is looking to take control of the Brazilian operator.
The denials came following an article in Brazilian publication Veja claiming that PT was in talks to acquire the…
Both Portugal Telecom and Oi have denied suggestions that the Lisbon-based incumbent is looking to take control of the Brazilian operator.
The denials came following an article in Brazilian publication Veja claiming that PT was in talks to acquire the stakes of Andrade Gutierrez Group and Jereissati Group for a combined R$2bn (US$985m). The article said BTG Pactual was advising PT.
If PT was to purchase the stakes it would gain control of Oi. It currently has an economic stake of 23.3% in the Brazilian operator.
“Contrary to recent press speculation, there are no plans which contemplate PT buying control or making an offer for Oi,” the Portuguese incumbent said in a statement.
In a notice to the market Oi said: “The Andrade Gutierrez Group and the Jereissati Group report that there are no plans underway to sell their respective shareholdings in Oi. The aim of the Andrade Gutierrez and Jereissati Groups is to leverage synergies with Portugal Telecom as part of the strategic and technological partnership … and hold their investments in Oi as long-term investments.”
Oi, formerly state-owned, was privatised in the late nineties and offers fixed-line and wireless services. PT bought into the company in 2011 spending R$8.2bn (US$4.9bn) with the telco saying it owns 25.6% of Oi.
In turn Oi took interest in PT’s capital stock to 10% in 2012.
