Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Portugal Telecom Shares Decline on Dividend Cut: Lisbon Mover

Portugal Telecom SGPS SA, the country’s biggest telecommunications company, fell the most in three months after cutting its dividend for 2013 and 2014.

The payout will be 10 euro cents a share each year, down from 32.5 cents for fiscal 2012 earnings. The stock dropped 7.3 percent to 2.93 euros in Lisbon, the biggest fall since May 14.

Oi SA, Brazil’s largest landline phone company, in July canceled a dividend payment of 1 billion reais ($432 million) after exceeding a self-imposed limit for indebtedness. Portugal Telecom owns 12.1 percent of the investor group known as TmarPart that controls Oi, and 19.4 percent of the Brazilian carrier’s non-voting shares, according to Oi’s annual report.

Portugal Telecom’s “dividend cut is a reflection of the continued investment required by Oi to turn around its structurally challenged business in Brazil,” Robin Bienenstock, an analyst at Sanford C. Bernstein Ltd., wrote in a note today.

Zeinal Bava joined Oi as chief executive officer In June, leaving the same post at Portugal Telecom to replace CEO Francisco Valim, who was ousted in January.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.