Caixa Geral de Depositos SA is selling a stake in Portugal Telecom SGPS SA for as much as 196 million euros ($270 million), as the former phone monopoly prepares to merge with Brazil’s biggest operator.
The state-owned bank is selling about 6.11 percent of Portugal Telecom, according to a regulatory filing. It had 6.31 percent at the end of June, according to Lisbon-based Portugal Telecom’s website. The shares are suspended in Lisbon trading.
Portugal Telecom and Rio de Janeiro-based Oi SA agreed this month to merge to create a trans-Atlantic carrier whose 100 million customers will make the business more competitive against Telefonica SA (TEF) and America Movil SAB.
Caixa Geral is selling the stake through an accelerated book building. The shares are being offered at 3.45 euros to 3.583 euros per share, according to the terms of the offer obtained by Bloomberg News. Caixa Banco de Investimento and Credit Suisse are the joint bookrunners. Portugal Telecom shares dropped 1 percent to 3.583 euros yesterday.
The government ended its “golden share” veto rights in the company in 2011 to get a bailout from the European Union and International Monetary Fund.
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