Vivo Shares Fall 39% Since Merger
Brazil's largest mobile operator Vivo has lost nearly one third of its total value on the São Paulo stock exchange (Bovespa) since it merged its five units in March 2006, Brazilian news site TI Inside reported.
When Vivo's assets started trading as one company on the Bovespa on March 30, 2006, the share price was 9.15 reais. On August 7 share prices had fallen to 5.52 reais, a loss of nearly 39%.
Vivo completed its merger of five stock exchange-listed units into Telesp Celular Participações, which was renamed Vivo Participações. The company is traded on the Bovespa and NYSE.
Vivo is jointly owned by Spain's Telefónica and Portugal Telecom.
The merged units were: Tele Centro Oeste Celular Participações, Tele Sudeste Celular Participações, Tele Leste Celular Participações and Celular CRT Participações.
Vivo recently saw its 2Q06 net loss almost double to 493mn reais (US$225mn) from 253mn reais in the same quarter a year ago.
Vivo has nearly 28.5 million clients nationwide with a 52.9% market share.
BNAmericas.com"
Posted to the site on 10th August 2006
