Oi SA (ADR) (NYSE:OIBR) Consolidates With Portugal Telecom


Dallas, Texas 02/03/2014 (FINANCIALSTRENDS) – Oi SA (ADR) (NYSE:OIBR) holds a market capital of $2.80 billion and trades on the stock market in the range $1.65 and low of $1.74. The Volume trade for the company 100.00 and the average volume is 4.32 million. The dividend payable by OIBR is 0.14, while the yield is 24.81. EPS is -0.9 and beta is 1.32.

Oi SA (ADR) (NYSE:OIBR) has also reported on its website that the regulatory body in Brazil, CADE has approved the consolidation of its businesses belonging to Oi and Portugal Telecom.

Meanwhile, Oi SA (ADR) (NYSE:OIBR) had shown interest in Brazil-based telecommunication unit TIM Participacoes belonging to Telecom Italia. The regulator CADE had proposed that TIM be sold as a complete unit to a new buyer, preferably a new entrant. The regulator, it is rumoured does not favour the division of the company between the other established companies.

Oi SA (ADR) (NYSE:OIBR) is the Brazilian holding company. Earlier called as Brazil Telecom SA, the company offers Switched Fixed-line Telephony Services (STFC) for domestic as well as overseas businesses.  However, with the announcement of the new consolidation of services between Oi and Portugal, the company does play a predominant role in this sector. However, acceptance of the consolidation by the regulator indicates that it the company will not be able monopolize the market segment for the same. In the second week of December, CADE has issued Telefonica notice to further lighten its presence in the sector over the next 18 months. The company had to sell its indirect stake in through either a local partnership or associate with another Brazilian mobile carrier such as Vivo.  However, the current political scenario is expected change considering the change of power with the presidential election later this year. Analysts recommend that waiting for the change in government would bring a change in the regulatory climate as well.

Subscribe to get your free report!

* indicates required
*Past performance is not a predictor of future results. All investing involves risk of loss and individual investments may vary. The examples provided may not be representative of typical results. Your capital is at risk when you invest – you can lose some or all of your money. Never risk more than you can afford to lose.By submitting your information you agree to the terms of our Privacy Policy • Cancel Newsletter Any Time.This is a FREE service from Finacials Trend. Signing up for our FREE daily e-letter also entitles you to receive this report. We will NOT share your email address with anyone.