Caixa Geral Sells Portugal Telecom Stake for $263 Million

Caixa Geral de Depositos SA sold a stake in Portugal Telecom SGPS SA for 190.6 million euros ($263 million), as the former phone monopoly prepares to merge with Brazil’s biggest operator.

The state-owned bank sold 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 dropped 3 percent to 3.475 euros 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 and America Movil SAB.

Caixa Geral sold the stake through an accelerated book building. The shares were 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 were the joint bookrunners.

The government ended its “golden share” veto rights in the company in 2011 as part of a bailout from the European Union and International Monetary Fund. Caixa Geral is also selling its insurance units after selling its healthcare business.

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