PT sale to Altice delayed 10 days as shares plummet to historic low

As the €7.4 billion sale of Portugal Telecom was delayed by 10 days, trading once again reopened to see shares prices plummet to a new historic low.

All eyes now are on what the general assembly will do with the 10 days’ grace it has to further scrutinise the proposed “knockdown” deal with French operator Altice.

Market regulator CMVM supported the move proposed by PT’s main shareholders (Novo Banco, Telemar, Visabeira, Controlinveste and Ongoing).

According to Observador website, “the objective is to clarify the sale” – to show in other words that it is in PT’s best interests.

But the ruinous business that has brought things to this stage is now the subject of a full-scale corruption probe ((see: https://www.portugalresident.com/pj-anti-corruption-squad-hones-in-on-pt-and-pricewaterhouse-coopers).

As business correspondent Guy Hedgcoe points out, the last 12 months, which have seen 95% slashed from PT’s share value, have also “raised doubts about Portugal’s corporate culture”.

The “monstrosity” of a merger with Brazilian telecommunications company Oi is likely to come under further scrutiny before shareholders okay the deal with Altice.

The deadline for a decision is now Thursday next week (January 22).

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