Tuesday, 20 November 2018

Friday Review: Latin lovers

By Mary Lennighan, Total Telecom
Friday 04 October 13

Brazil holds the key to the future for a number of struggling European incumbents.

The fortunes of Europe's struggling telecoms incumbents are becoming increasingly intertwined with those of their partners and subsidiaries in Latin America. Earlier this week Portugal Telecom and Oi – the former owns 25.6% of the latter and the latter 10% of the former, confusingly enough – announced their decision to merge and form a single, Brazil-based entity. Oi's new CEO and former Portugal Telecom head Zeinal Bava will take the helm. The deal will create a company with some scale benefits – the pair have 100 million subscribers and €12.4 billion in 2012 pro forma revenues between them – and a simplified ownership and management structure. The companies expect to realise synergies of €1.8 billion. Despite the fact that the deal means Portugal Telecom will be controlled from Brazil…

The fortunes of Europe's struggling telecoms incumbents are becoming increasingly intertwined with those of their partners and subsidiaries in Latin America. Earlier this week Portugal Telecom and Oi – the former owns 25.6% of the latter and the latter 10% of the former, confusingly enough – announced their decision to merge and form a single, Brazil-based entity. Oi's new CEO and former Portugal Telecom head Zeinal Bava will take the helm. The deal will create a company with some scale benefits – the pair have 100 million subscribers and €12.4 billion in 2012 pro forma revenues between them – and a simplified ownership and management structure. The companies expect to realise synergies of €1.8 billion. Despite the fact that the deal means Portugal Telecom will be controlled from Brazil…

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