Oi sinks after pricing US$3.7bn follow-on

摘要

Wireless and fixed-line carrier of completed Brazil's largest follow-on offering of shares in almost four years and made a significant step forwards for the planned merger with partner Portugal Telecom in the process. Yet the celebrations were muted as pricing came at the bottom of guidance and the stock slumped in response. Oi's ADRs fell by 16.59% to US$0.87 the day after the company raised R$8.25bn (US$3.7bn) from selling common and preferred stock to local and foreign investors, including a fund led by the deal's main adviser BTG Pactual. An asset swap with Portugal Telecom in effect boosts the value of the transaction to R$13.95bn.