Oi was dealt a blow only weeks ago when it says its acquisition target Portugal Telecom failed to disclose debts to Oi before the transaction finalized, Now, some reports say that Oi’s ability to compete at an upcoming 4G spectrum auction will likely be hurt by the deal.
Portugal Telecom reportedly failed to notify Oi of its $1.2 billion worth of shares in a company that later defaulted, leading to heavy losses.
But before those losses were disclosed to Oi, the $14 billion merger was consummated. Oi predicted the takeover would lead to new growth in Brazil and boost cash flow. Now, however, Oi is facing lowered ratings and more scrutiny from Brazil development lender BNDES.
Further, say reports, analysts once believed Oi had a “once in a lifetime” opportunity at the upcoming 4G spectrum auction as sources say the Brazilian government looked to the telco to drive consolidation But now, losses from the troubled merger will hurt Oi’s competitive edge in the industry, experts say.
Both Oi and Portugal Telecom declined to comment on the revelations.
Full content: Bloomberg
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Hess Shareholders Approve $53 Billion Merger with Chevron
May 28, 2024 by
CPI
EU Regulators Engage with Telegram as App Nears Critical Usage Threshold
May 28, 2024 by
CPI
EEX Offers Remedies to Address EU Antitrust Concerns Over Nasdaq Deal
May 28, 2024 by
CPI
BRG Expands European Competition Practice with New Expert Team in Brussels
May 28, 2024 by
CPI
UK Law Empowers Regulators to Fine Big Tech Without Court Approval
May 28, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Merger Guidelines Retrospective
May 21, 2024 by
CPI
Mergers of Complements
May 21, 2024 by
CPI
Personality Traits, Private Equity, and Merger Analysis
May 21, 2024 by
CPI
The 2023 Merger Guidelines: Lessons in the Importance of Incipiency, Modern Economics, and Monopsony
May 21, 2024 by
CPI
The 2023 Merger Guidelines: Sharpening Merger Analysis
May 21, 2024 by
CPI