Portugal Telecom rejects talk of Oi takeover

Portugal Telecom rejects talk of Oi takeover

Portugal Telecom has stated it has no intentions to take full control or make an offer to acquire the rest of Brazilian operator Oi.

The Portuguese operator acquired a 22.4% stake in Oi in 2010. Along with Oi’s controlling shareholders, Portugal Telecom said it “regularly reviews proposals which may enhance operational performance and governance to extract additional synergies especially in the areas of engineering, network, technology, innovation and services”.

Following reports in local Portuguese press, a possible merger was touted between Portugal Telecom and Oi, and was examined by management teams in both companies.

Zeinal Bava, CEO at Portugal Telecom, was said to be the best positioned candidate to lead the project, but the company’s latest statement suggests it is not presently in the market to take full ownership of the Brazilian operator.

Oi is reportedly valued at $985 million.

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