Mar. 16, 2015, 10:18 AM
- Portugal Telecom (NYSE:PT) is off 5.5% following similar trading in Lisbon (-3.4%) following news that Olivedesportos has sold its entire stake in PT (17.5M shares).
- The transaction garnered €11.6M.
- Olivedesportos also cleared out of media holding company Nos -- which started out as a PT media spinoff.
Feb. 19, 2015, 2:02 PM
- Oi SA (NYSE:OIBR) is off 7.4% and has been as low as -9.7% in the past hour, leading a pack of related Brazilian stocks in declines (also trading lower: PT, -2.3%; VIV, -0.7%; TSU, -0.2%).
- Telecom Italia (NYSE:TI) -- trying to merge its TIM with Oi -- is off 1.6%.
- The Brazilian real's slipped 1.1% against the dollar, which is showing strength against several global pairs, including the Swiss franc, the Loonie and the euro.
- ETFs: EWZ -1%. Other related funds: BRF, BRXX, EWZS, BZF, BRZU, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ
Jan. 26, 2015, 1:38 PM
- Though European equity markets have brushed off yesterday's Greek vote, which yielded a resounding victory for the anti-austerity Syriza party, debt-laden merger partners Portugal Telecom (PT -9.1%) and Oi (OIBR -8.9%) haven't been so fortunate.
- Oi had R$47.8B ($18.5B) in net debt at the end of Q3. A chunk of Oi/PT's debt is denominated in euros.
- Shares of both remain above where they traded last week before the Altice deal was approved.
Jan. 26, 2015, 12:46 PM
Jan. 22, 2015, 4:00 PM
- Portugal Telecom (PT +17.9%) shareholders have signed off on the $8.7B sale of Oi's (OIBR +20.1%) Portuguese assets to Altice.
- With the sale approved, debt-laden Oi is expected (perhaps with the help of rivals) to turn its sights on acquiring part or all of TIM Participacoes (TSU +2.9%), thereby cutting the number of Brazilian mobile carriers to three.
- Earlier: Oi, PT surge as Portuguese vote looms
Jan. 22, 2015, 1:41 PM
- Oi (OIBR +8.6%) is up 47% over the last three trading days, and merger partner Portugal Telecom (PT +10%) is up 17%. The gains for the beaten-down merger partners come ahead of the release of results (due today) of a vote by PT shareholders on the $8.7B sale of Oi's Portuguese assets to Altice.
- There has been speculation the vote could be further delayed - it was previously set for Jan. 12 - as PT shareholders argue they need more information. Oi has denied claims from disgruntled PT shareholders and workers that the asset sale amounts to a breach of its merger terms with PT.
- Analysts and lawyers have argued the Oi/PT merger, which has left PT with a 25.6% stake in the combined company, will ultimately remain intact even if the asset sale is rejected this week, given trying to unwind it would likely be very costly and produce years of litigation.
Jan. 13, 2015, 4:26 PM
- Though Portugal Telecom (NYSE:PT) remained halted in New York today, shares resumed trading in Lisbon and closed down 2.4% to €0.70 ($0.82). They fell as low as €0.63 (a 20-year low) before bouncing.
- Yesterday, investors voted to suspend a meeting to decide on Oi's (NYSE:OIBR) $8.7B sale of its Portuguese assets to Altice until Jan. 22. Though PT only owns a minority stake in the merged company, it retains the power to block the sale. Oi needs the proceeds from the Altice sale to pursue a merger with part or all of TIM Participacoes.
- Oi was unchanged today, but fell 16% yesterday. The yield on PT's 20-year euro-denominated bonds is up to 5.1%.
Jan. 7, 2015, 1:52 PM
- Portugal Telecom (PT -13.7%) has plunged to new lows a day after Portugal's prosecutor general said it had carried out searches at the carrier's offices on account of a fraud probe regarding PT's financial statements.
- Last year, PT's shares were hit hard by the fallout from its purchase of ~$1.2B in debt from a company (Rioforte) owned by PT investor Espirito Santo. The debt was defaulted on, and led to board resignations and the restructuring of PT's merger terms with Oi (OIBR -0.2%).
- Oi, which fell 15% yesterday but is near breakeven today, is in the midst of selling its Portuguese assets to France's Altice. PT's main asset is a stake in the merged company.
Jan. 5, 2015, 9:57 AM
- With Greece and oil-related fears once more taking a toll, The Euro Stoxx 50 is down 2.1%, and many continental indices posting ~2% declines. U.S.-traded European tech and telecom names are performing much the same way.
- Tech decliners: NOK -4.2%. ALU -3.3%. SAP -2.9%. STM -2%.
- Telecom decliners: VOD -2.4%. TEF -4%. ORAN -3.6%. TI -2.2%. PT -6%.
Dec. 29, 2014, 3:23 PM
- Debt-laden Oi (OIBR -4.4%) is down sharply after a Greek vote that paves the way for a snap election triggered a flight to safety among European equity and debt investors. Portugal Telecom (PT -7.4%), whose main asset is a stake in Oi, is down even more.
- SA author/Oi bull David Gilcher recently noted Oi has two bond issues with a total principal of $854M maturing in 2016, and two more with a principal of $3B maturing in 2022. Oi recently stated it will host a bondholder meeting in which it will asked for debt restrictions to be loosened, in order to gain more M&A flexibility.
- Oi and PT sold off last week in the wake of Oi's 1:10 reverse split. Both companies are near their 52-week lows.
Dec. 29, 2014, 9:13 AM
Dec. 9, 2014, 10:37 AM
- Portugal Telecom (PT +3.4%) is higher on a rough day for equities after Oi's (OIBR -3.6%) board signed off (following weeks of rumors) on the sale of Oi's Portuguese ops to Altice for $9.1B. Oi is heading in the opposite direction.
- TIM Participacoes (TSU +0.7%), which many expect will now be targeted by Oi (and perhaps also other Brazilian mobile rivals), is up modestly.
Dec. 1, 2014, 11:41 AM
- Oi (OIBR -4.6%) and Portugal Telecom (PT -5.5%) are both off sharply following reports Altice is close to buying Oi's Portuguese ops (PT Portugal) for $9.2B. With M&A rumors having swirled for weeks, some investors may have been hoping for a higher offer.
- Meanwhile, P-E firms Bain and Apax haven't thrown in the towel. Portuguese conglomerate Semapa disclosed this morning it would partner with Bain/Apax to bid for PT Portugal. Semapa says it would likely acquire a 5%-10% stake in a deal.
Nov. 30, 2014, 4:44 PM
- French cable giant Altice has agreed to buy Oi's (NYSE:OIBR) Portuguese ops for €7.4B ($9.2B), Reuters reports. Bloomberg reports Altice is "close to reaching an agreement," after having beaten out a bid from P-E firms Apax and Bain.
- A Reuters source says Oi and Altice will soon announce they're entering three weeks of "exclusive talks and due diligence" to finalize the deal, which would serve to unravel Oi's merger with Portugal Telecom (NYSE:PT). PT's main asset is a minority stake in the combined company.
- Selling the Portuguese assets could pave the way for Oi to merge with Brazilian rival TIM Participacoes (NYSE:TSU), or to partner with two other rivals - Telefonica's Vivo (NYSE:VIV) and America Movil's Claro - in acquiring and breaking up TIM. TIM parent Telecom Italia (NYSE:TI) has reportedly been weighing a deal with Oi.
Nov. 20, 2014, 4:03 PM
- Bloomberg reports Telecom Italia (TI -1.4%) will ask for board support tomorrow to "explore a potential transaction" between TIM Participacoes (TSU -0.8%) and Brazilian rival Oi (OIBR +5.7%). Both Oi and merger partner Portugal Telecom (PT +2.8%), whose main asset is a stake in the merged company, have rallied.
- TI was rumored to be interested in Oi in September, but quickly responded by saying it's not in talks with the carrier.
- Meanwhile, multiple bids have been made for control of Portugal Telecom, and a report has also surfaced that all three of TIM's rivals (including Oi) want to buy the company and break it up in order to consolidate Brazil's slow-growing mobile market.
Nov. 11, 2014, 9:17 AM
Portugal Telecom SA provides telecommunications services mainly in Portugal, Brazil and certain countries in Africa, including: wireline services, which include fixed line telephone services for residential & nonresidential customers.
Industry: Wireless Communications