LISBON, Jan 6 (Reuters) - Portugal’s Prosecutor General has carried out searches at Portugal Telecom SGPS on suspicions of fraud related to an investigation into the company’s financial investments, the prosecutor said on Tuesday.
The prosecutor’s office said in a statement that the investigation is taking place together with the CMVM market regulator, judicial police and tax authorities.
Nobody at Portugal Telecom SGPS was immediately available to comment.
Portugal Telecom invested nearly 900 million euros last year in commercial paper issued by the now bankrupt Rioforte holding company of the Espirito Santo banking family. Rioforte defaulted on the loans, leading to a revision of the merger terms between Portugal Telecom and Brazilian telecom group Oi.
Portugal Telecom SGSP is a Lisbon-listed holding company. The telecoms operations in Portugal of Telecom Portugal have been transferred to Oi under the companies’ merger.
Reporting By Axel Bugge