BUZZ-Portugal Telecom: Brokerage cuts price target

martes 4 de noviembre de 2014 12:29 GYT

** American depositary receipts of the company down 6.2 pct at $1.52

** Berenberg cut its target price on the company's Lisbon-listed shares to 1.36 euros from 3.25 euros

** "We are cutting our price target ... in a move that reflects the significant changes in PT SGPS's and Oi SA's situation over recent months, including the emergence of PT SGPS's 897 million euro investment in Rioforte commercial paper," Berenberg analysts said

** Oi's merger with Portugal Telecom soured this summer after the Rioforte holding company of the Espirito Santo banking family, a shareholder in PT, defaulted on nearly 900 million euros ($1.14 billion) of debt owed to PT, a debt which Oi said it had not been aware of before their merger deal

** Up to Monday's close, Portugal Telecom's stock had fallen 62.5 pct this year