SAO PAULO, March 28 (Reuters) - Shares of Brazilian telecom Oi SA recovered in early Friday trading after securities regulator CVM suspended a planned stock offering for 30 days due to comments to the press by Chief Executive Officer Zeinal Bava.
The suspension dealt a setback to Oi’s planned merger with Portugal Telecom SGPS SA involving a capital increase of up to 14 billion reais ($6.2 billion). Some minority shareholders had contested the terms of the deal, triggering a selloff of Oi shares this month.
Oi’s common shares and preferred shares rose nearly 3 percent in Friday trading. The common stock is still down 18 percent for March, and the preferred has declined about 9 percent.
$1 = 2.27 Brazilian reais Reporting by Brad Haynes and Asher Levine; Editing by Lisa Von Ahn