Brazilian board members of Portugal Telecom quit over debt buy: paper

Shares of Oi and Portugal Telecom tumble as analysts warn of potential credit risk


SAO PAULO (Reuters) - Two Brazilian board members of Portugal Telecom resigned after learning of 897 million euros ($1.22 billion) of short-term investments the company made without consulting them, newspaper Valor Economico reported on Wednesday.

The Portuguese company invested in debt issued by Rioforte, a firm controlled by the owners of Espirito Santo Group, which is a major shareholder in Portugal Telecom.

One of the directors, Otavio Azevedo, chief executive of Brazilian industrial conglomerate Andrade Gutierrez, told the newspaper he felt "uncomfortable" learning of the investment in a press release, but he already had plans to step down from the board due to possible conflicts of interest.

Andrade Gutierrez is a key shareholder in Brazil's Oi SA, which is merging with Portugal Telecom.

Azevedo and Fernando Magalhães Portella, the head of Jereissati Participaçõoes, who also quit Portugal Telecom's board according to Valor, could not be reached for comment.

Shares of Oi and Portugal Telecom, which cemented their merger with a $3.7 billion share offering in April, have tumbled this week as analysts warned of potential credit risk from the Rioforte investment.

Regulators on Tuesday banned short-selling in shares of Banco Espirito Santo as the Portuguese bank attempted to allay concerns over problems with its parent company and possible losses in Angola.

(Writing by Brad Haynes; Editing by Leslie Adler)


Featured Reports

Content Delivery Networks (CDN) 2015
Content Delivery Networks (CDN) represent large distributed system of servers deployed in multiple data centers across the Internet. CDNs provide solutions for efficiently and effectively managing content of all types. Solutions include core services such as aggregation, management, and distribution of content as well as a variety of value-added functionality.


Cable Carrier Wi-Fi: MSO Take MNO Market Share
How does a cable provider gain a bigger piece of the telecom market pie chart? With a clever Wi-Fi strategy, cable providers are in a unique position to dominate the residential and business telecommunications markets. This is the portent of things to come in the very near future: an MSO as MNO play.


Structured and Unstructured (Big) Data in Telecom Analytics
This report provides the reader with a broad understanding of telecom data (structured and unstructured/big data) and related analytics. The report identifies market drivers and opportunities as well as forecasts for certain key growth areas such as deep packet inspection.


Affordable Market Reports on Big Data, IoT, CDN & More!
Access the exclusive new series of market research reports brought to you through the partnership of Mind Commerce research and
Browse the latest titles



Featured Events & Partners

GEN 15
Nov. 16-19, 2015

Omni Hotel, Dallas, Texas

The global gathering of networking professionals enabling the future of agile, assured and orchestrated services powered by CE 2.0, LSO (Lifecycle Service Orchestration), SDN and NFV.

Visit event website...