+------------------------------------------------------------------------------+
Oi/Portugal Telecom Merger Offers 50-60% Upside, Bernstein Says 2013-11-27 08:13:11.619 GMT
By Sam Chambers Nov. 27 (Bloomberg) -- The merged entity will create a more investable business, with the potential to benefit from further M&A in Brazilian wireless mkt, Bernstein says. * Says a bid for TIM Brasil by Telefonica, alone or in combination with America Movil, is possible in early 2014 * PT/Oi would benefit from the deal, as it would give them chance to acquire spectrum more cheaply through remedies imposed on the transaction, Bernstein says * NOTE: Tel Italia CEO said selling Brazilian assets to repay debt is wrong * Oi is the better way to invest in the merger, Bernstein says; initiates co. at outperform with a PT of BRL8 on OIBR3 listing and PT of BRL7.4 for OIBR4 * NOTE: Short interest stands at 7.8% of Portugal Telecom’s shrs outstanding: Markit
For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>
--Editor: James Cone
To contact the reporter on this story: Sam Chambers in London at +44-20-7673-2021 or schambers7@bloomberg.net
To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net