Brazilian telecommunications company Oi SA, which is trying to stave off bankruptcy, has asked the Brazilian regulator for seven more days to prove that a takeover proposed by China Telecom Corp. Ltd and US private equity firm TPG Capital Management LP would not disrupt its services, O Globo reports.
The Brazilian newspaper says the regulator, the Agência Nacional de Telecomunicações, has blocked shareholders in Oi from voting on the takeover, saying it is still analysing the takeover proposal.
The report says shareholders and creditors of Oi are due to meet tomorrow to vote on the proposal, but that the meeting will probably be postponed.
China Telecom and TPG Capital propose to put 10 billion reais (US$3.06 billion) into Oi, and to lay fibre optic cables to serve homes in over 2,000 Brazilian municipalities.
