|The telco at the
centre of one of the country's few public
The combination of telecommunication companies Oi
and PT has taught Brazilian investors the downside of public
M&A. A more thorough review of disclosures is likely to
occur in future deals.
Public company M&A is rare in Brazil, and
many difficulties faced in the merger of its biggest telco Oi
with Portugal’s PT are typical pitfalls. The deal
has been closely watched because of general stagnation in the
Investors of both companies are angry over what
their boards may have concealed or planned before the merger.
Brazilian shareholders have called for increased disclosure
standards, claiming they should have been given an opportunity
to revote on the deal after it was re-priced.
"Our law is conceptually a good one," said João
Ricardo de Azevedo Ribeiro a partner with...