The chairman of Portugal Telecom's shareholder assembly has proposed the board cancel the 12 January vote to approve the sale of the company's Portuguese assets by merger partner Oi, arguing that the merger has become invalid. In a letter to which Reuters had access, Antonio Menezes Cordeiro said that a new shareholder meeting should then be called with two points on the agenda: to either end the merger with the Brazilian company or approve the sale of assets to telecommunications group Altice. He said the fact that Oi agreed to sell the assets means the merger agreement is no longer valid.
Portuguese company Ongoing, which owns 10.05 percent of PT, said that the sale of Oi's Portuguese assets to Altice is still its best option. In an interview for Bloomberg, Rafael Mora, vice-chairman of Ongoing, said there is no better alternative on the table, adding that he is open to any other options that will bring value to the company, "but not those that will generate litigation". He added that shareholders must ponder all the risks. PT shareholders are scheduled to decide 12 January on the purchase by Altice of Portuguese assets that were transferred to Brazil's Oi as part of the merger between the companies.
Portuguese stock market regulator CMVM suspended the trading of Portugal Telecom SGPS shares on 9 January. The share price has fluctuated significantly in recent days, as a result of uncertainties regarding a key shareholder meeting called for 12 January. In a statement, the CMVM said it sent an official letter to the PT board of directors, with a copy to the chairman of the shareholders meeting, reaffirming the request for further information and calling for suitable measures to be implemented in order to fully protect the rights of shareholders and the lawfulness of decisions to be taken.
