good lord, they are looting the company! This is one of the worst companies EVER. 2 products that are dead and dying and they do massive r+d just to squash it.
and not the electronic type but the mechanical ones. we just need a nuke or big solar storm. In either case this is WAY WAY WAy oversold. Was cheap before update now its just silly. eps estimates now 26-27, and cash flow should have this closer to 40! glta
At this point its only a rumor, but it would be bad for pt because they are diluting oi. So when the merger does happen pt gets a share of a company that has already diluted shareholders. Plus pt was already getting a reduced stake due to the 2 billion of bad paper they bought. For me to many red flags at this point. ceo who was supposed to run the mess has left, shares are tanking and rumors of dilution. Plus they did not bid at a spectrum auction last week in brazil, which they needed to in order to stay competitive. Its very cheap here though, but came in at 2.25 so had to take my loss. gltu
according to cnbc
The Portuguese PSI 20 Index also saw some weakness. Shares of Portugal Telecom tanked around 20 percent with Reuters reporting market chatter of a potential share sale by Brazilian telecoms firm Oi.
mostly agree but also would say since this is stock deal as well it could be repricing what mdt shares are worth if market has a big correction
yeah i guess i did not understand the final structure of the merger, still seems like they are giving it away at the current price.
good article on it below
Bava quits as Oi, Portugal Telecom merger falters
By Mary Lennighan, Total Telecom
Wednesday 08 October 2014
Resignation lends credence to reports that merger agreement will be unwound; Oi CFO Bayard Gontijo steps up as interim CEO.
Zeinal Bava has stepped down as chief executive of Brazilian telecoms operator Oi after its ongoing merger with Portugal Telecom was thrown into doubt.
Oi announced Bava's resignation in a statement to the stock market late on Tuesday. It explained that Oi's chief financial officer Bayard De Paoli Gontijo will serve as interim CEO until a replacement is found.
The announcement comes following media reports that French cable group Altice is planning to launch a bid for Portugal Telecom, a move that would require the unravelling of the Portuguese incumbent's merger agreement with Oi.
Oi and Portugal Telecom announced plans to merge in October last year and have begun, but not completed, the process.
The tie-up was thrown into doubt in July when it emerged that Portugal Telecom had acquired #$%$897 million in debt from Rio Forte Investments (Rioforte) without first consulting with Oi. However, when Rioforte defaulted on debt repayments, the companies renegotiated the terms of their merger – Portugal Telecom was forced to accept taking a 25.6% stake in the merged entity rather than the 38.1% it had originally agreed – and it appeared that the deal would progress as planned.
Indeed, the companies insisted that they were committed to completing the deal.
It was something of a surprise then when Brazilian news outlet Valor Econômico on Monday claimed that Oi is in talks to sell Portugal Telecom's assets in order to focus its attentions on Brazil.
Oi responded to that by saying that it is considering options to help it cut costs, refinance debt and boost its liquidity position, adding that these options could include "the potential sale of non-strategic assets and investments in subsidiaries." It named its Africatel unit as one such subsidiary but did not comment directly on Portugal Telecom, other than to note that "no decision has been made regarding the sale of its assets in Portugal, nor has it received any such offers."
Bloomberg then named Altice as a potential buyer, noting that the French firm aims to strike a deal for Portugal telecom within a matter of weeks.
Bava's resignation lends further credence to talk of the merger being unwound. The coming month will be an interesting time for the two companies.
but how does entering a joint venture or merger in which pt only had a 20% stake, give oi the right to put pt on the block? I am wondering if its being reported wrong, maybe they are only selling assets they got in the merger?
google pt and several articles come up saying oi selling itself and pt? others says its selling pt cellular towers? In either case a take under seems to be priced in, or liquidation? Hard to find valid news on this company so any thoughts appreciated. The official line is merger still on, but the ceo was booted and stock dropping like a rock. Either a gift or runs for the hills, I can't figure it out.
2 thoughts are the obvious E word, but the second maybe more important one is pricing in a looming recession? your guess as good as mine. Transports lead the way in and they were all down today until the fed minutes.
sorry to hear that, not sure what to make of this. I could see them getting in trouble if we have some sort of global recession or china has hard landing. Also won't be surprised if we go lower now that an analyst threw out a lowball target. I own some of the offshore drillers, also heavily levered but also way down. So not recommending them, but I might buy up the big oils like cvx if we get big sell off. gltu
Not saying it will be, just pointing out that you would get a huge bump in share price if it did.
So any one trying to knock it down on that argument is some what clueless imho.
I personally wish they would since market has already priced it in plus some.
This idea that commodities can trade at 1990 levels when a country the size of china is still growing at 7.5% seems a bit silly to me. So in my mind either china and Europe are on the verge of a crash or these things are massively oversold.
there is no entry point or reversal! you either commit to riding it all the way down and then back up or stay out.
every day there is some knuckle head on here calling a bottom, there is too much leverage for that and oil still going down. if you don't mind the ride go for it.
I mean do people actually ever follow their results to see they are wrong far more often then right? hello earth to dummies?