Altice Deal Planned in 10 Days: Portugal Telecom

Published By : 13 Jan 2015 | Published By : QYRESEARCH

Shareholders for Portugal Telecom SGPS SA have elected for a 10 day gap to hold a meeting that will decide the fate of telecom company Oi. The company’s Portuguese assets are planned to be sold to Altice SA, which belongs to billionaire Patrick Drahi. Oi’s shares in the meanwhile have slipped by 15 per cent.

The decision to move the meeting from today to ten days from now has been made after CMVM filed an appeal to gather more information from Portugal Telecom. The request was made on December 9 by the Portuguese securities regulator, who also asked to take necessary measures to protect shareholders’ rights. The members also voiced their concern over the legality of decisions to be taken during the meeting.

Earlier today the CMVM said that Portugal Telecom’s shares will continue trading after a brief suspension on Friday. The suspension will be held pending the release of information that CMVM requested.

Oi made a statement today, in which it responded that it supported the suspension of the meeting. Ongoing Investment SGPA SA, along with other shareholders, originally proposed the suspension to add time for more data to be gathered and released to investors. The proposal received a 90 per cent support on approval, according to Rafael Mora, the VC of Ongoing Investments.

Portugal Telecom is a minority investor in Oi and has no control over the company’s assets, except for the power to withhold the sale. Oi shares have already fallen 96 centavos to 5.64 reais. This is an all time low for the company, which finished in Sao Paolo at 5.70 reais.
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