Oi SA, Brazil’s largest landline carrier, slumped to a 14-year low in its second day of declines after Brazil fined the phone company 14.3 million reais ($7.25 million) for regulatory violations.
Shares tumbled 4.4 percent to 5.64 reais at the close of trading in Sao Paulo, the lowest since April 1999. The benchmark Bovespa index dropped 1.4 percent.
Anatel, the telecommunications regulator, fined Oi for infractions including charging clients incorrectly, according to yesterday’s official gazette. The fines refer to issues from 2003 to 2009, Oi said in an e-mailed statement. The company is constantly evaluating possible appeals, and continues to make investments in infrastructure and technology, it said.
“It’s not a heavy fine, but it adds to the negative sentiment,” Felipe Rocha, an analyst at brokerage Omar Camargo, said by phone from Curitiba, Brazil. “When you look at the set of fines the company has been given, you get a sense things may not be going in the right direction.”
In 2011 and 2012, Oi was fined 122 times, compared with 33 incidents for Tim Participacoes SA and 26 for Telefonica Brasil SA, according to Anatel.