Brazilian telecom Oi shares plunge as mobile ops sale hits snag (updated)

Telefonica Brasil, SA

07/02/2022 23:51

(Recasts with share move; adds Anatel statement, Copel Telecom
filing, context)
    SAO PAULO, Feb 7 (Reuters) - Shares of Brazilian telecom Oi
 OIBR3.SA  plummeted more than 10% on Monday on a challenge to
the company's 16.5 billion reais ($3.14 billion) sale of its
mobile operations to rivals TIM Participacoes SA  TIMS3.SA ,
Telefonica Brasil's Vivo  VIVT4.SA  and Claro.
    Brazil's telecom regulator Anatel, which had approved the
sale last week, is expected to review its decision, newspaper O
Globo reported, after Copel Telecom, controlled by Brazilian
tycoon Nelson Tanure, requested an annulment.
    According to a filing by Copel Telecom to the regulator,
seen by Reuters, Anatel board member Emmanoel Campelo could not
have chaired the two meetings in which the deal was approved. As
a result, Anatel's decision was illegal, the company said.
    Copel noted that this view was expressed by the regulator's
own legal department after being consulted.
    Anatel said in a statement that annulment requests of its
decisions should follow standard procedures.
    "Until there is a final decision on the case, all the acts
carried out by Anatel are presumed to be legal and remain
valid", the agency added.
    On Sunday, Brazil's prosecutor's office recommended that
antitrust regulator Cade block the sale. 
    Waldir Alves, who represents the prosecutor's office at
Cade, said in a report the deal should be blocked because it
harms competition.
    Cade is expected to analyze the matter at a meeting on
Wednesday.
    Common shares in Oi fell 10.4%, while Telefonica's Vivo
ended 1.2% lower, and TIM Participacoes dropped 1%.

 (Reporting by Peter Frontini, Gabriel Araujo and Ricardo Brito;
Editing by Leslie Adler and Richard Chang)
 ((Peter.Siqueira@thomsonreuters.com; +55 11 56447727;))