December 6, 2018 / 1:31 PM / 3 days ago

Brazil's market regulator accuses former Oi shareholders -report

SAO PAULO, Dec 6 (Reuters) - Brazilian securities regulator CVM has sued shareholders, management and board members of Brazil’s largest fixed-lined telecommunications company, Oi SA , over their role in an attempted restructuring in 2013, newspaper Valor Econômico reported on Thursday.

The parties named in the suit included Brazilian pension funds Previ, Petros and Funcef, as well as BNDESPar, the investment holding company of the country’s development bank, and Pharol SGPS SA, formerly named Portugal Telecom. They did not immediately comment on the matter.

Valor said CVM believes the shareholders may have violated their fiduciary duty in approving Oi’s acquisition of Portugal Telecom.

That transaction ultimately led to major losses for Oi shareholders after Portugal Telecom was found to have loaned more than $1 billion to a holding company of the Espirito Santo family, which ultimately defaulted on the debt.

CVM’s website shows the accusation but it does not provide detailed information on the case. (Reporting by Carolina Mandl; Editing by Steve Orlofsky)

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