OIBR.C Oi SA

By Rogerio Jelmayer and Jeffrey T. Lewis 

SÃO PAULO--The Brazilian government would study any potential merger or acquisition agreement between telephone companies Oi SA and TIM Participações SA closely to avoid too much concentration in the sector, Communications Minister André Figueiredo said Tuesday.

Oi announced Monday that LetterOne, an investment firm led by Russian billionaire Mikhail Fridman, is planning to invest $4 billion in the Brazilian phone company. The offer is conditioned on the success of a potential merger with TIM Participações, the Brazilian unit of Telecom Italia, Oi said. TIM Participações said Monday that there are currently no talks with LetterOne or Oi about a possible merger or acquisition.

"The Brazilian government will follow with attention the case announced by Oi about TIM," said Mr. Figueiredo at a conference. "We'll only comment when we've been formally informed by the company."

Oi has 35% of Brazil's fixed-line telephone market, but it fell behind rivals in the mobile race and has been trying to make up ground while cutting its heavy debt load. Mobile operator TIM doesn't have a relevant position in the fixed-phone and broadband markets, according to analysts.

In the second quarter, the most-recent figure available, Oi's net debt totaled 34.64 billion reais (about $8.9 billion), while its net revenue in the period totaled 6.78 billion reais.

When asked about Oi's debt level, Mr. Figueiredo said the government might help the company if necessary.

"Nothing has been ruled out," he said. "We know how important Oi is, though that doesn't necessarily mean the government will inject cash directly into the company."

Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com and Jeffrey T. Lewis at jeffrey.lewis@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

October 27, 2015 09:22 ET (13:22 GMT)

Oi (NYSE:OIBR.C)
과거 데이터 주식 차트
부터 2월(2) 2025 으로 3월(3) 2025

Oi (NYSE:OIBR.C)
과거 데이터 주식 차트
부터 3월(3) 2024 으로 3월(3) 2025