Jan. 21 (Bloomberg) -- Oi SA, Brazil’s most expensive mobile carrier on a price-to-earning basis, 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 5.1 percent to 8.70 reais at the close of trading in Sao Paulo, the biggest decline since Aug. 20. The stock fell 24 percent last year, the worst performance among Brazil’s mobile-phone carriers.
Some shareholders are unhappy with the company’s results from last year, Veja columnist Lauro Jardim reported, without saying how he got the information. Oi’s adjusted net income fell 32 percent to 678.5 million reais ($332 million) last year, according to the average estimate of 13 analysts surveyed by Bloomberg. The company is scheduled to release fourth-quarter results next month.
A press official at Oi declined to comment on the columnist’s report when contacted by Bloomberg News.
Brazilian regulators have increased pressure on telecommunications providers to improve service and drive down costs in the world’s second-largest emerging market.
In July, the country’s regulator Anatel banned Oi, Tim Participacoes SA and America Movil SAB, owner of Claro, from selling new mobile voice and data service because of network failures. The three companies later resumed sales after promising to reduce dropped calls and improve customer service.
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