Brazil's Oi Not In Talks to Sell Stake to Portugal Telecom

Telemar Participacoes SA, parent of Brazil's biggest fixed-line phone company Oi (TNLP4.BR), said in a statement Tuesday that it is not in talks to sell a stake to Portugal Telecom SGPS SA (PT).

The regulatory filing was in response to news reports that Telemar was in talks with Portugal Telecom, Telemar said. Analysts have speculated that Portugal's biggest phone company may buy a stake in another Brazilian phone company after receiving an offer to sell its stake in Brazilian operator Vivo Participacoes SA (VIV, VIVO4.BR) to Telefonica SA (TEF), according to the statement.

Telefonica, which shares control of Vivo with Portugal Telecom, has hired a law firm to explore breaking up its joint venture with Portugal Telecom after months of unsuccessful negotiations to buy out its partner's stake.

-By Paulo Winterstein, Dow Jones Newswires; 55-11-3544-7073; paulo.winterstein@dowjones.com

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