In this week's round-up of telecom capital market news, the merger between Oi and Portugal Telecom receives official approval and Eurocom announces the pricing details for its forthcoming IPO:
Oi-Portugal Telecom merger moves forward
Brazilian watchdog group Anatel recently announced that it would approve a merger between the Rio de Janeiro-based Oi and Portugal Telecom, provided that both companies could prove they did not have any outstanding debts to the Brazilian government, according to Reuters. This is the latest development in the ongoing pursuit of the two organizations to sync their operations. RCR Wireless earlier reported that Oi was in the process of securing agreements from various financial institutions to purchase shares in a future second offering. That move was seen as part of a larger plan to clear the way for a merger with Portugal Telecom.
Not all parties view of merger between the two telecoms favorably, however. Many of Oi's minority shareholders have expressed concerns that they would suffer from such a transaction. According to The Wall Street Journal, some of those individuals further demonstrated their disapproval by selling shares in Oi after the Brazilian securities organization CVM approved the merger. Since the proposed deal was announced in October 2013, Oi stock has lost 23 percent of its value.
Eurocom announces pricing of IPO
Mobile hardware manufacturer Eurocom recently announced the pricing of its shares when the company goes public on April 1. The initial public offering of 400,000 shares will be set at a price of $20 per share. According to Eurocom, the offering is expected to close on April 16, but is subject to customary closing conditions.
Bouygues extends deadline on SFR offer
Officials from France's Bouygues SA have offered to extend the deadline for its bid to purchase mobile business SFR from Vivendi SA. Currently, Vivendi is in exclusive negotiations with Altice SA regarding a possible purchase of the mobile asset. The Wall Street Journal reported that those talks are set to finish this Friday, when Vivendi officials will then consider whether to reconsider Bouygues' bid. By extending the deadline by two weeks to April 25, Bouygues hopes Vivendi gives its proposal more thought.
"Bouygues wishes to allow Vivendi the time to examine its offer in a calm and detailed manner and to proceed with all the necessary discussions that such an important operation requires," the telecom stated.
