Brazil's Oi shares jump on new merger terms with Portugal Telecom

miércoles 16 de julio de 2014 09:34 GYT
 

SAO PAULO, July 16 (Reuters) - Shares of Brazilian telecommunications firm Grupo Oi SA jumped on Wednesday after the company said it had renegotiated terms of a merger with Portugal Telecom.

Under a new agreement, Portugal Telecom agreed to a smaller initial stake in their merged company and assumed the credit risk of a 897 million euros ($1.22 billion) debt investment it had not disclosed before the deal.

At 10:30 a.m. (1330 GMT), Grupo Oi preferred shares were up 15.3 percent at 1.83 reais, while common shares had gained 14.2 percent to 1.88 reais. ($1 = 0.7376 euros) (Reporting by Asher Levine; Editing by Jeffrey Benkoe)