- Oi (OIBR +8.6%) is up 47% over the last three trading days, and merger partner Portugal Telecom (PT-OLD +10%) is up 17%. The gains for the beaten-down merger partners come ahead of the release of results (due today) of a vote by PT shareholders on the $8.7B sale of Oi's Portuguese assets to Altice.
- There has been speculation the vote could be further delayed - it was previously set for Jan. 12 - as PT shareholders argue they need more information. Oi has denied claims from disgruntled PT shareholders and workers that the asset sale amounts to a breach of its merger terms with PT.
- Analysts and lawyers have argued the Oi/PT merger, which has left PT with a 25.6% stake in the combined company, will ultimately remain intact even if the asset sale is rejected this week, given trying to unwind it would likely be very costly and produce years of litigation.