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.