Navigate this market better. Subscribe for FREE stock alerts and information.

Thursday, November 13, 2014

Brazil's Oi wants better offer for PT Portugal business - paper, (NYSE: OIBR)

Brazilian telecommunications firm Oi SA is seeking a better offer from two bidders for its Portuguese business, newspaper Folha de S.Paulo said on Thursday. Private equity firms Bain Capital and Apax Partners have made an offer valued at 7.075 billion euros ($8.82 billion) to purchase the PT Portugal operating business of Portugal Telecom from Oi, rivalling a slightly lower offer valued at 7.025 billion euros from European telecoms group Altice.But both offers include similar "earn-out" clauses which pay up to 800 million euros of the price only if the Portuguese business hits certain performance targets for revenue generation and profits.Oi is now asking for a guaranteed pay-out of at least 7 billion euros, free of any such earn-out discounts, Folha said.A spokeswoman for Oi declined to comment.

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 3.87% or $-0.0205/share to $0.51. In the past year, the shares have traded as low as $0.40 and as high as $1.97. On average, 11400300 shares of OIBR exchange hands on a given day and today's volume is recorded at 5489959.