Brazilian telco Tele Norte Leste Participacoes (Oi) has announced a share swap proposal, which will see it convert shares in Brasil Telecom into shares in Telemar Norte Leste, part of the Oi Group.
The share swap proposal follows Oi’s acquisition of…
Brazilian telco Tele Norte Leste Participacoes (Oi) has announced a share swap proposal, which will see it convert shares in Brasil Telecom into shares in Telemar Norte Leste, part of the Oi Group.
The share swap proposal follows Oi’s acquisition of Brasil Telecom in 2008, and is the last step in the full integration of Brasil Telecom into Oi. The process will see each Brasil Telecom share being swapped for 0.3955 voting shares in Telemar, with each Brasil Telecom preferred share being swapped for 0.2191 class C Telemar preferred shares.
The exchanges were lower than expected and caused shares in Brasil Telecom to take a hit on the stock exchange.
The share swap proposal will now be sent to the board of Brasil Telecom for approval, but due to the lower than expected exchanges, the board could reject the proposal, it has been suggested.