PT share price takes new tumble amid heightened fraud probe

PT share price takes new tumble amid heightened fraud probe

Portugal Telecom shares have fallen sharply (yet again) following news of the fraud probe that saw the company’s Lisbon head offices searched by police on Tuesday (see: https://www.portugalresident.com/pj-anti-corruption-squad-hones-in-on-pt-and-pricewaterhouse-coopers). The beleaguered company’s stock price has lost around 95% of its value over the last 12 months and is still trying to secure the terms of its “knockdown sale” to French operator Altice.

As widely reported in the Portuguese media, PT’s woes began after it lent almost €900 million to a subsidiary of BES, just months before the bank imploded.

The loan was never repaid, the subsidiary went belly-up and now those that engineered the deal are under investigation for fraud and malpractice.