The new rules proposed by the board of Brasil Telecom are aimed solely at protecting the company, CEO Carla Cico said in answer to questions from an analyst during a conference call to discuss the telco?s second-quarter earnings report on Wednesday, August 6. Protection is required to face the possibility of mergers and acquisitions now that Brazil?s regulatory framework allows ownership changes for fixed-line incumbents.
Among the proposed amendments to the bylaws is a provision preventing election to the board of individuals employed by ?companies that may be considered competitors? or whose ?interests may conflict? with those of BrT.
Specialists consulted by TELETIME NEWS say the incumbent local exchange carrier, controlled by Opportunity, is concerned above all to block an attempt by Telecom Italia to reacquire a major interest in its equity. Last year Telecom Italia and Opportunity signed a shareholder agreement enabling the Italian group to relinquish its stake in BrT so that it could operate its GSM wireless network (TIM). The agreement included a clause under which Telecom Italia could theoretically return as soon as the ILEC?s fulfillment of regulatory targets had been certified. Anatel is about to announce certification. If the Italians do return, BrT will face legal barriers to its own plans for wireless operations. Anatel doesn?t allow wireless carriers with the same controlling shareholders to operate in the same region.
Telecoms analysts wonder how the rule changes would affect minority shareholders. ?Would investors who own voting stock (ON) in Telemar be denied the right to vote at shareholder meetings of Brasil Telecom?? asks one.
