Brazil's Oi SA said on Thursday that before combining assets Portugal Telecom SGPS SA had not disclosed an investment in the holding company of a key shareholder under investigation, highlighting a gulf between the telecommunication companies in the midst of a drawn-out merger.Oi said it would defend its interests as it pressed for more information about Portugal Telecom's acquisition of 897 million euros ($1.22 billion) in debt issued by Rioforte, which is held by one of the Portuguese company's biggest shareholders, the Espirito Santo banking family.Analysts have warned of potential credit risk from the Rioforte debt maturing this month, equal to roughly 40 percent Portugal Telecom's market value, setting off investor concerns about the merger formalized in an April 28 share offering.Shares of Oi fell 2 percent in Thursday trading and Portugal Telecom slumped 7.3 percent, falling in tandem for the fifth straight session.
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 fell by 3.99% or $-0.0319/share to $0.77. In the past year, the shares have traded as low as $0.76 and as high as $2.34. On average, 15823700 shares of OIBR exchange hands on a given day and today's volume is recorded at 19226692.
Portugal Telecom SGPS SA (Portugal Telecom) is a Portugal-based holding company primarily engaged in the telecommunications sector. Shares of PT fell by 5.38% or $-0.1801/share to $3.17. In the past year, the shares have traded as low as $3.41 and as high as $5.09. On average, 877171 shares of PT exchange hands on a given day and today's volume is recorded at 1552944.
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