Brazil's Grupo Oi launches plan to offer new stock

miércoles 2 de abril de 2014 09:29 GYT

SAO PAULO, April 2 (Reuters) - Brazilian phone carrier Grupo Oi SA on Wednesday launched an offering for up to 22.75 billion reais ($10 billion) in new stock based on Tuesday's closing price, a key step in its planned merger with Portugal Telecom SGPS SA.

The launch came less than a day after securities watchdog CVM lifted a suspension on the primary share offering. The company expects to raise fresh capital to beef up CorpCo, the new entity after its tie-up with Portugal Telecom.

A pricing date for the deal was not specified in a filing with the CVM.

Both common and preferred shares of Grupo Oi rose about 5 percent shortly after the announcement. ($1 = 2.27 reais) (Reporting by Alberto Alerigi Jr.; Writing by Asher Levine; Editing by Jeffrey Benkoe)