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Brazil: Officials OK Oi merger meeting

By  |  March 27, 2014

Brazilian securities officials have reportedly given the go-ahead for telco operator Oi to proceed with shareholder meetings to discuss its proposed merger with Portugal Telecom.

Brazil’s largest fixed-line operator first announced last October plans to merge with the Portuguese firm in efforts to strengthen its position against dominant rivals Telefonica and America Movil. According to reports, the merged firm would be the largest telecommunications firm among Portuguese-speaking consumers.

While Brazil’s allowance of shareholders to meet over the deal is a win for majority shareholders, minority shareholders have voiced concerns over the complexities of the transactions. Reports say the deal is an unusual one, as cross-ownership between the companies already exist.

Full Content: New York Times

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