Interesting. OI sold PT assets. Now they want to negotiate with PT. Better they wait till they get cach in hand and negotiate :D
Since OI has operations only in brazil, falling currency is one of the big reason. In last 6 months it fall more than 30%, You can find the currency impact by comparing OIBR and OIBR4.
Unless you are casadipace77723 with a different alias my reply is not meant for you. In case you are not casadipace77723 and you felt I was referring you or yahoo mb makes you think so I apologize, I don't mean that.
you need to read casadipace77723 posts. Actually he was talking about $2 to $5 if I remember correct. May be he is super smart and knows about RS or he is idiot who simply call posts as bogus.
Looser will never learn. Posting from reuters is not bogus post, that is sharing what I find. I come to message board to find if there is any news/event I missed.
Giving statements a stock will shoot to $12 or $15 (pre split) is an example of bogus.
I am posting news from reuters. I still not able to understand how a telecom company can fall so hard and so fast, that is a different story.
OI should hire a good CEO and come up with a plan than saying they are open to buy TIM or merge with TIM. If they come out with a plan I am hoping this will go to $10 in a year or two.
Another roadblock. We may not be see merge with OI anytime soon (or never) if they go ahead with Orange.
BARCELONA (Reuters) - Telecom Italia shares rose as much as 3 percent on Monday after Orange boss Stephane Richard said a combination with the Italian company would be attractive.
A Telecom Italia spokesman said no talks over a deal had occurred
I have to agree with you. Every thing went bad with PT merger. They used secondary offering and paid PT debt assuming they can use PT cash alter. PT lost 1.2B and OI already wasted secondary offering. They thought TIM will come forward and didn't participate in 4G aution (they don't have money anyway) and TIM decided not to merge.
Now they may post 6B profit and pay taxes and fee on that. In reality they lost money and opportunity. I need to wait and watch.
I got all numbers from Yahoo balance sheet. PT has 16.5B assets and 14.3 liabilities. We know they lost around 1.2B in cash Equivalents and .5B good will is simply gone which leaves with 700M which reflect PT stock price (more or less).
OI balance sheet (2013 not the latest) does not reflect the share price.
I am exactly looking for reason why OI won't survive with out merge either financial reason or technology. Company was just doing fine till end of 2013. I know they didn't bid for 4G as they do not have any cash left. In 2013 they gave dividend of 12.25 cents which is more than 50% based on pre RS price. What changed in this one year?
OI claims book price is little more than $10. Even if half of that is true price should be $5. Assuming TIM is not going to make offer at all for next 10 years what you guys thing will be price. Will this go to $1 (10% of book price).
Once PT deal is closed, OI end up posting 6B profit from asset sale. They are yet to sell African assets. OI have inherited PT liabilities of 14B. How can they post 6B?
Any thoughts what is fair price based on fundamentals.
Real bad news for people who are hoping merger will happen. They are ready to sell but to merge with OI. Looks like they took decision against the deal. With TIM out of picture we need to see how OI will come out of this crisis.
In November last year, Telecom Italia said that it would explore a number of options to integrate its Brazilian unit TIM Participacoes with competitor Oi in preparation for the a major shakeup and possible consolidation in the Brazilian telecommunication market.
But Mr. Patuano said the company decided against a deal for Oi when it became evident that it would be too complex and not add enough value. He said it took the company 45 days to do due diligence when it made an offer for Brazilian operator GVT in 2014, but it took almost four months to assess Oi. He said his company realized that “a straightforward deal is not evident” for Oi.
With plans for a tie-up with Brazil’s Oi off the table, Mr. Patuano said Telecom Italia’s will focus on improving the performance of its overall business.
If OI didn't buy PT it won't be like 80 cents. Agreed they lost around 1B but they are earning like 400M a year and paying nice dividend.
What does that mean. Looks like some bps are down but not able to understand.
It is interesting how people will come to such conclusions. Premerger stock was $14 (even higher if you go back) then there were no issues. In other words OI is 10B company and PT around 4B. Post merger combined market cap is less than 2.5B. Only major event that happened is PT lost around 1.2B.
May be brazil is doing bad comparatively, OI revenue is falling down around 5% a year which will stabilize eventually. Still it doesn't make sense in any way when OI gained by breaking and selling PT and TIM is willing to buy OI.
All the sudden one analyst set price target $2 with equal weight and other guy comes and say already sinking.
Never saw a price target from barclays, may be I missed it. Not sure from where they pulled that price target from.
Never saw a stock with potential merger opportunity, such a low book/price value, govt backed and company which kind of screwed PT and gained 6B (on paper) low for so long. Even almost bankrupt (caused by govt through) national bank of greece is doing better than this.
Before merger it is around 10B company. On paper they gained $6B yet market cap is less than $2B. How odd it is.
SÃO PAULO—Brazil’s telecommunications company Oi SA will probably book a net gain of #$%$6 billion ($6.7 billion) from the sale of its PT Portugal operating unit to Altice SA, and will use the proceeds to reduce its existing debts, according to a person involved in the process.
Oi is in the process of merging with Portugal Telecom SGPS SA, PT Portugal’s parent company. Portugal Telecom’s shareholders last week approved the sale of its operating unit to Luxembourg-based Altice for #$%$7.4 billion, ending weeks of uncertainty about the deal.
Over the time it may reach $11. I know many stocks which reversed the course and went to fair value. Like Netflex, F, LVS and at the same time there are lot stocks which were not able to go up and eventually BK.
I am hoping OI will reverse the course soon. As far as I am concerned $5 is break even, $7 is a gift and $11 is a dream come true.
You posts show your ignorance, of course with all due respect. You can day dream and imagine price going to $20 or $30 (presplit $2 or $3), you will find reality if you use google along with yahoo MB.
Jan 27 (Reuters) - Debt holders of Oi SA , Brazil's most indebted phone carrier, approved the sale of merger partner Portugal Telecom's Portuguese assets to rival Altice Portugal, subject to some conditions, according to a securities filing late Monday.
The company said bondholders determined that proceeds from the sale must be used to help consolidate the telecommunications industry, for paying down debt, or a combination of both.
Oi will call another bondholder meeting for Feb. 12. (Reporting by Marcela Ayres; Writing by Asher Levine; Editing by Larry King)