E A Shareholder's View On Portugal Telecom's Impropriety

These assets are worth money but as noted already: it will take time. PT is not the only creditor and it is an unsecured lender. Claims will probably be pro-rated. The bid prices may undervalue the assets because of the bankruptcy. I am voting Si because there is no real alternative to the restructuring of the merger with Oi.

I believe someone at PT should be sacked for having made the placement in Rioforte because there must have been a person at fault. Has PT used Rioforte to earn money on its cash in earlier events, like when it collected from Telefonica de España for selling control of Vivo in Brazil, which it then paid to shareholders of PT with a 9-mo delay partially imposed by the Portuguese taxman? 

I want also to know if PT sought government regulatory or independent advice from rating agencies or others before trusting its loot to Rioforte, or if the plan was to gain a bit off money offshore not subject to Portuguse taxes. Or if someone got a finder's fee!

[Subsequently in a Portuguese investigation of the matter, then Portugal Telecom CEO Zainal Mohammed Bava swore on the Koran that he had no knowledge of the Rioforte placement and the CFO told the investigators that he had been advised by the company's bankers, BES, to place the funds with Rioforte and did not consider this to indicate risk. Auditors have been scathing about this but nobody has been sacked or sent to jail yet.]

Below is a copy of the letter I sent about this matter:

View single page >> |

I am a shareholder in Portugal Telecom.

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.