Portugal Telecom (PT) Lower as Brazil State Development Bank Questions Rioforte Deal
- S&P ends modestly lower as rising Treasury yields offset robust retail data
- Electronic Arts (EA) Rebounds on Reaffirmed Guidance Despite Battlefield 2042 Delay, Be Concerned But Not Worried Says Analyst
- U.S. retail sales surprise to upside in strong boost to economy
- Chat Platform Discord Raises $500 Million, Valuation More Than Doubled In Less Than a Year
- Dollar index climbs after U.S. retail sales show surprise rebound
Portugal Telecom (NYSE: PT) shares are lower in early trading as Brazil's state development bank, BNDES, lashed out at the company following a recent debt acquisition from one of it's shareholder's holding companies.
Bloomberg reported that Portugal Telecom acquired about $1.22 billion of Commercial Paper from Rioforte last April. Rioforte is controlled by Grupo Espirito Santo, which also has a 10 percent stake in the telecom.
In an emailed statement earlier Wednesday, BNDES said the transaction isn't consistent
with minimum standards of good corporate governance.
Analysts speculate that Rioforte won't be able to make payments on the commercial paper, which are due July 15th and 17th, saddling Portugal Telecom with losses while also increasing the company's leverage.
Shares of Portugal Telecom are down 7 percent Wednesday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Invesco Ltd. (IVZ), State Street (STT) asset management unit in merger talks - WSJ
- MoSys (MOSY) and Peraso Technologies Announce Definitive Agreement for Business Combination
- Carrier Global (CARR) Acquires BrokerBay Inc
Create E-mail Alert Related CategoriesHot Corp. News, Mergers and Acquisitions, Momentum Movers
Related EntitiesDefinitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!