Oi merger with Portugal Telecom: a strategic partnership

• Author(s): Martins, Mauro Miguel Rodrigues
• Date: 2014
• Persistent ID: http://hdl.handle.net/10362/11716
• Origin: Repositório Institucional da UNL
• Subject(s): Telecommunications; Capital restructuring; Merger; Synergies
• Document Type: Master thesis
• Language: English
• Advisor(s): Pinho, Paulo
• Contributor(s): RUN

Description

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Finance from the NOVA – School of Business and Economics

This work seeks to explain and quantify the synergies resultant from the merger between Portugal Telecom and Oi. The main question we analyze throughout our analysis was whether the merger could bring some advantages that wouldn’t be achieved through the previous industrial alliance and to whom would the merger be more beneficial. Our conclusion was that since it will be impossible to replicate the Meo brand, the synergies should resume to faster cost cutting gains and interest payment savings through a capital increase which will be used to repay debt, besides enjoying a larger scale, accounting for minimal synergies.