BRIEF-Portugal Telecom says reversing Oi merger would destroy value
Jan 16 (Reuters) - Portugal Telecom SGPS :
Said in a statement late on Thursday that if shareholders fail to approve the proposal by its merger partner Oi to sell PT's former operations, PT Portugal, to Altice that would contribute to the continued uncertainty and "would consequently have a negative impact on the shareholders' equity of Oi and, indirectly, its shareholder, PT SGPS".
If the sale is approved, the sale in itself will not create any liability of Oi, whether judicial or extrajudicial.
The possible sale of PT Portugal "does not necessarily imply that the process of integrating PT SGPS and Oi ... will not be completed".
The Brazilian legal experts that have been consulted believe that the share capital increase of Oi, which was part of the merger process, is legally irreversible.
PT SGPS board understands that any claim of contractual breach relating to the merger would lead to "a legal dispute of unpredictable duration in the Brazilian courts, further prolonging the deadlock situation of PT Portugal and inevitably creating a process of destruction of value for all parties involved".
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