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Portugal Telecom, Brazil's Oi announce merger plan

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October 2, 2013 06:04 AM EST | AP


LISBON, Portugal — LISBON, Portugal (AP) — Portugal Telecom and Brazil's Oi say they intend to merge, creating a company called CorpCo with combined 2012 revenue of 12.4 billion euros ($16.8 billion) and around 100 million customers.

Portugal Telecom shares jumped 14.7 percent by mid-morning on the Lisbon stock exchange, to 3.9 euros.

PT is the largest shareholder in Oi, and the two companies have had an alliance since 2010.

The companies said in a statement Wednesday they expected to conclude the merger by the middle of next year. The deal is subject to regulatory approval and a minimum cash capital increase of 2.3 billion euros.

The statement said Brazil-based CorpCo will benefit from greater economies of scale.