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Friday, July 11, 2014

Brazil sees no risk for Oi-Portugal Telecom merger, sources say, (NYSE: OIBR)

The Brazilian government does not see a merger between Grupo Oi SA and Portugal Telecom SPGS SA at risk, following tension between the companies over Portugal Telecom's debt deals with troubled Banco Esp�rito Santo SA, three sources with knowledge of the situation said on Friday. The sources, who declined to be identified because of the sensitivity of the issue, said the government is monitoring the situation from afar. The Brazilian government has been a major sponsor of the merger since it was devised last year.

Oi SA, formerly Brasil Telecom SA, is a Brazil-based holding company engaged in the provision of Switched Fixed-line Telephony Services (STFC) domestically and internationally. Shares of OIBR traded higher by 5.47% or $0.0353/share to $0.68. In the past year, the shares have traded as low as $0.63 and as high as $2.34. On average, 18491300 shares of OIBR exchange hands on a given day and today's volume is recorded at 34642460.