Portugal Telecom Seeks to Lock In Oi Veto Rights, Diario Economico Says

Portugal Telecom SGPS SA plans to ensure it has veto rights over key decisions in Tele Norte Leste Participacoes SA, or Oi, Diario Economico said, citing a report in Brazilian newspaper Valor Economico.

Portugal Telecom agreed last month to acquire direct and indirect stakes in the Brazilian phone company. In talks with other shareholders, it’s seeking veto power over decisions such as capital increases and acquisitions, Diario said. Key Brazilian shareholders in Oi will have the same rights, Diario said, citing an unidentified person.

In addition, Brazilian pension funds that are shareholders in Oi are insisting that they maintain their board seats, the Portuguese newspaper said.

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