Brasil Telecom
Encyclopedia
Brasil Telecom S.A. (BM&F Bovespa: BRTO3, BRTO4 / ) is a major Brazil
ian telecommunications company headquartered in the Brazilian capital Brasilia
. The company is one of three land lines, one long distance and eight mobile telephone companies in Brazil that emerged from the break-up of Telebrás
. Originally the company was called Tele Centro Sul, because its service covered the states in the central and southern parts of Brasil, namely Acre
, Rondônia
, Goiás
, Tocantins
, Mato Grosso
, Mato Grosso do Sul
, Paraná
, Santa Catarina
and Rio Grande do Sul
, as well as the Distrito Federal
. Since January 9, 2009, the company is a subsidiary of Oi.
and some Brazilian pension funds as investors, alongside Telecom Italia
, paid 2.07 billion reais in June 1998 to buy Tele Centro Sul from the Brazilian government as part of the privatization process of Telebrás. After some legal wrangling, the company is now controlled by Citigroup
and the Brazilian pension funds, who removed Opportunity from the management of their respective funds and took control of the company in 2005. BrT started up a wireless service in 2004.
Brasil Telecom's stock is traded on BM&F Bovespa, where it is part of the Ibovespa
index, as well as on the New York Stock Exchange
.
In 2008, it was announced that Brasil Telecom would be acquired by Oi. That transaction required changes in legislation, since legislation at the time prohibited a fixed telephone company from purchasing another fixed telephone company in a different license area. That legislation has since changed, and Oi completed its purchase of BrT on January 9, 2009.
to determine whether Telecom Italia
competed with Brasil Telecom in 2000 in the latter's acquisition of the Brazilian fixed-line phone company Companhia Riograndense de Telecomunicoes ('CRT') from Spain's Telefónica
with the purpose of increasing the final price paid by Brasil Telecom for CRT, as both Opportunity and Telecom Italia
were struggling for the control of Brasil Telecom.
Brasil Telecom and Telecom Italia
have been locked in court struggles since 2000. Kroll was accused of spying on Brazilian government officials.
Additionally, Opportunity also became involved in legal disputes with the investors in its managed funds, namely some Brazilian pension funds and Citigroup
, which culminated in Opportunity's removal as the manager of these funds and, ultimately, Opportunity's losing the control of Brasil Telecom (along with other companies controlled by the funds, namely Telemig Celular
, Amazonia Celular, Santos Brasil, and Opportrans/Rio de Janeiro's subway operator).
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
ian telecommunications company headquartered in the Brazilian capital Brasilia
Brasília
Brasília is the capital city of Brazil. The name is commonly spelled Brasilia in English. The city and its District are located in the Central-West region of the country, along a plateau known as Planalto Central. It has a population of about 2,557,000 as of the 2008 IBGE estimate, making it the...
. The company is one of three land lines, one long distance and eight mobile telephone companies in Brazil that emerged from the break-up of Telebrás
Telebrás
Telebrás was the Brazilian state-owned monopoly telephone system. It was broken up in July 1998 into twelve separate companies, nicknamed the 'Baby Bras' companies, that were auctioned to private bidders...
. Originally the company was called Tele Centro Sul, because its service covered the states in the central and southern parts of Brasil, namely Acre
Acre
The acre is a unit of area in a number of different systems, including the imperial and U.S. customary systems. The most commonly used acres today are the international acre and, in the United States, the survey acre. The most common use of the acre is to measure tracts of land.The acre is related...
, Rondônia
Rondônia
Rondônia is a state in Brazil, located in the north-western part of the country. To the west is a short border with the state of Acre, to the north is the state of Amazonas, in the east is Mato Grosso, and in the south is Bolivia. Its capital is Porto Velho. The state was named after Candido Rondon...
, Goiás
Goiás
Goiás is a state of Brazil, located in the central part of the country. The name Goiás comes from the name of an indigenous community...
, Tocantins
Tocantins (state)
Tocantins is one of the states of Brazil. . The state was formed in 1988 out of the northern part of Goiás, and construction began on the capital, Palmas, in 1989, in contrast to most of the other cities in the state which date back to the Portuguese colonial period...
, Mato Grosso
Mato Grosso
Mato Grosso is one of the states of Brazil, the third largest in area, located in the western part of the country.Neighboring states are Rondônia, Amazonas, Pará, Tocantins, Goiás and Mato Grosso do Sul. It also borders Bolivia to the southwest...
, Mato Grosso do Sul
Mato Grosso do Sul
Mato Grosso do Sul is one of the states of Brazil.Neighboring Brazilian states are Mato Grosso, Goiás, Minas Gerais, São Paulo and Paraná. It also borders the countries of Paraguay and Bolivia to the west. The economy of the state is largely based on agriculture and cattle-raising...
, Paraná
Paraná (state)
Paraná is one of the states of Brazil, located in the South of the country, bordered on the north by São Paulo state, on the east by the Atlantic Ocean, on the south by Santa Catarina state and the Misiones Province of Argentina, and on the west by Mato Grosso do Sul and the republic of Paraguay,...
, Santa Catarina
Santa Catarina (state)
Santa Catarina is a state in southern Brazil with one of the highest standards of living in Latin America. Its capital is Florianópolis, which mostly lies on the Santa Catarina Island. Neighbouring states are Rio Grande do Sul to the south and Paraná to the north. It is bounded on the east by...
and Rio Grande do Sul
Rio Grande do Sul
Rio Grande do Sul is the southernmost state in Brazil, and the state with the fifth highest Human Development Index in the country. In this state is located the southernmost city in the country, Chuí, on the border with Uruguay. In the region of Bento Gonçalves and Caxias do Sul, the largest wine...
, as well as the Distrito Federal
Brazilian Federal District
The Federal District is set apart for Brasília, the capital of Brazil. Located in a region called Planalto Central, or Central Plateau, the Federal District is divided in 29 administrative regions. Brasilia - place where the three branches of the Federal Government are located - is the main...
. Since January 9, 2009, the company is a subsidiary of Oi.
History
The Brazilian investment bank Opportunity, which managed funds that had CitigroupCitigroup
Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
and some Brazilian pension funds as investors, alongside Telecom Italia
Telecom Italia
Telecom Italia is the largest Italian telecommunications company, also active in the media and manufacturing industries. Now a private concern listed on the Borsa Italiana, it was founded in 1994 by the merger of several state-owned telecommunications companies, the most important of which was...
, paid 2.07 billion reais in June 1998 to buy Tele Centro Sul from the Brazilian government as part of the privatization process of Telebrás. After some legal wrangling, the company is now controlled by Citigroup
Citigroup
Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
and the Brazilian pension funds, who removed Opportunity from the management of their respective funds and took control of the company in 2005. BrT started up a wireless service in 2004.
Brasil Telecom's stock is traded on BM&F Bovespa, where it is part of the Ibovespa
Índice Bovespa
The Bovespa Index is an index of about 50 stocks that are traded on the São Paulo Stock, Mercantile & Futures Exchange ....
index, as well as on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
.
In 2008, it was announced that Brasil Telecom would be acquired by Oi. That transaction required changes in legislation, since legislation at the time prohibited a fixed telephone company from purchasing another fixed telephone company in a different license area. That legislation has since changed, and Oi completed its purchase of BrT on January 9, 2009.
Legal issues
Brasil Telecom, the country's third largest fixed-line operator, and Opportunity, which controlled Brasil Telecom, hired KrollKroll Inc.
Kroll is a risk consultancy firm based in Midtown Manhattan, New York City. and established in 1972.- History:Kroll was founded in 1972 by Jules B. Kroll as a consultant to corporate purchasing departments...
to determine whether Telecom Italia
Telecom Italia
Telecom Italia is the largest Italian telecommunications company, also active in the media and manufacturing industries. Now a private concern listed on the Borsa Italiana, it was founded in 1994 by the merger of several state-owned telecommunications companies, the most important of which was...
competed with Brasil Telecom in 2000 in the latter's acquisition of the Brazilian fixed-line phone company Companhia Riograndense de Telecomunicoes ('CRT') from Spain's Telefónica
Telefónica
Telefónica, S.A. is a Spanish broadband and telecommunications provider in Europe and Latin America. Operating globally, it is the third largest provider in the world...
with the purpose of increasing the final price paid by Brasil Telecom for CRT, as both Opportunity and Telecom Italia
Telecom Italia
Telecom Italia is the largest Italian telecommunications company, also active in the media and manufacturing industries. Now a private concern listed on the Borsa Italiana, it was founded in 1994 by the merger of several state-owned telecommunications companies, the most important of which was...
were struggling for the control of Brasil Telecom.
Brasil Telecom and Telecom Italia
Telecom Italia
Telecom Italia is the largest Italian telecommunications company, also active in the media and manufacturing industries. Now a private concern listed on the Borsa Italiana, it was founded in 1994 by the merger of several state-owned telecommunications companies, the most important of which was...
have been locked in court struggles since 2000. Kroll was accused of spying on Brazilian government officials.
Additionally, Opportunity also became involved in legal disputes with the investors in its managed funds, namely some Brazilian pension funds and Citigroup
Citigroup
Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
, which culminated in Opportunity's removal as the manager of these funds and, ultimately, Opportunity's losing the control of Brasil Telecom (along with other companies controlled by the funds, namely Telemig Celular
Telemig Celular
Vivo Minas was a regional Brazilian telecommunications company headquartered in Belo Horizonte. The company used to be one of eight wireless telephone companies that emerged from the break-up of Brazil's government-owned telephone monopoly Telebras. The name Telemig comes from the fact that it was...
, Amazonia Celular, Santos Brasil, and Opportrans/Rio de Janeiro's subway operator).