Oi Declines After Report Some Shareholders Dissatisfied With CEO

Brazilian mobile carrier Oi SA (OIBR4) fell the most in five months after Veja reported that some shareholders are dissatisfied with CEO Francisco Valim’s handling of the company.

Shares tumbled 5.3 percent to 8.68 reais at 1:39 p.m. in Sao Paulo, the steepest intraday decline since Aug. 20.

Valim’s situation is “unsustainable” because some shareholders are unhappy with the company’s results from last year, Veja columnist Lauro Jardim reported, without saying how he got the information. A press official at Oi declined to comment when contacted by Bloomberg News.

Oi’s adjusted net income fell 32 percent to 678.5 million reais ($332 million) last year, according to a Bloomberg survey of 13 analysts. The company is scheduled to release fourth- quarter results next month.

Oi was the worst performer among the three publicly traded Brazilian mobile phone operators in 2012, sinking 24 percent. It’s up 4 percent this year.

To contact the reporter on this story: Denyse Godoy in Sao Paulo at dgodoy2@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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