Oi SA, the second-worst performing telecommunications service provider in Latin America this year, is open to further consolidation in Brazil as it merges with Portugal Telecom SGPS, Chief Executive Officer Zeinal Bava said.
Oi SA Chief Executive Officer Zeinal Bava, saddled with the lowest analyst ratings in Brazil’s phone industry, said he’ll win over skeptics by improving quality and cutting investments at the same time.
Oi SA’s merger with Portugal Telecom SGPS SA is likely to bolster Brazil’s largest landline phone carrier as it battles better-equipped rivals in the world’s fifth-biggest wireless market. The shares fell on concern it won’t be enough.
Portugal Telecom SGPS SA Chief Executive Officer Zeinal Bava is stepping up the fight to force his counterpart at Telefonica SA , Cesar Alierta , to put more money on the table for control of their Brazilian venture.
Oi SA’s proposed merger with Portugal Telecom SGPS SA is being criticized by minority investors, who see the value of their shares diluted to fund the purchase of $2 billion of debt from Oi’s controlling families.
Tim Participacoes SA, the Brazilian telecommunications carrier providing the best return this year, can thrive on its own and fight growing pressure to sell the company, said Chief Executive Officer Rodrigo Abreu.