PT, Oi soar after Espirito Santo debt positions disclosed

|By:, SA News Editor

In a 6-K, Portugal Telecom (PT +7.5%) says it owned €750M ($990M) in short-term debt issued by Espirito Santo International, as of the end of 2013. The figure includes €500M that was settled on Feb. 10, €200M settled on Jan. 29, and €50M settled on Feb. 20.

PT and Oi (OIBR +9.3%) are up sharply. Shares of both carriers have been hit hard by PT's purchase of €897M in debt issued by Grupo Espirito Santo subsidiary Rioforte. In July, PT and Oi restructured their merger agreement to account for the purchase.

The Portuguese government announced a bailout for Banco Espirito Santo three weeks ago.