LISBON, Sept 8 (Reuters) - Portugal Telecom shareholders approved on Monday the revised terms of a merger with Brazilian peer Oi after a failed debt investment forced the Portuguese company to accept less favourable terms in the tie-up.
A large majority - 98.25 percent of shareholders present at the meeting - voted in favour of approving the new terms of the deal, said a PT spokeswoman.
A number of small shareholders have said they were unhappy with the deal and that they would fight against it in the courts despite Monday’s vote.
In July, Portugal Telecom was forced to take a cut in its share of the company resulting from the merger with Oi to 25.6 percent from 38 percent after a holding company of the Espirito Santo banking family defaulted on nearly 900 million euros ($1.2 billion) it owed to the Portuguese firm.
Portugal Telecom had failed to inform Oi of the investment and assumed the unpaid debt under the reworked deal in July. Portugal Telecom (PT) and Oi combined their operating assets in May.
Reporting By Daniel Alvarenga, writing by Axel Bugge