Shares of Brazil's Oi jump on report of possible capital injection

miércoles 17 de febrero de 2016 13:57 GYT
 

SAO PAULO Feb 17 (Reuters) - Shares of Brazilian telecommunications company Oi SA jumped as much as 19 percent on Wednesday following a report in newspaper Valor Economico of a possible capital injection for the heavily indebted company.

Valor reported that London-based LetterOne Holdings SA, the investment firm controlled by Russian billionaire Mikhail Fridman, could inject capital into the Brazilian telecom operator even if it does not immediately merge with rival TIM Participações SA as stipulated in a preliminary October agreement.

A press representative for Oi declined to comment on the report, which cited unnamed sources close to the negotiations. Representatives for LetterOne could not immediately be reached for comment. (Reporting by Brad Haynes and Guillermo Parra-Bernal; Editing by Chizu Nomiyama)