Investors ofembattled Brazilian telephoneoperator Oi have reportedlysought the help of New York-based investment bank Abadi & Co Global MarketsInc. for structuring its potential takeover bid, Reuters reported, citing "twosources directly involved in the matter."
The investorsare reportedly comprised of a group of mostly Oi creditors and shareholders gunningfor control of the telephone operator, including investment companies and an unnamedtelecommunications carrier that would serve as Oi's strategic operator, the sourcestold Reuters. While they are discussing the bid terms with Abadi including the timing,the sources noted that Oi's position remains "very fluid" and the mannerof the deal structure is not yet totally clear.
The sourcesdid not mention if there are currently money talks between the parties, althoughone said that Oi has no need for new cash in the short term.
The group isalso considering deal talks with Société Mondiale, which recently acquired a 6.6%stake in Oi, one of the sources said. The fund, headed by distressed debt investorNelson Tanure, is also rumored to possibly be seeking a takeover bid during Oi'sbankruptcy hearings. Both investor groups' interests "are not necessarily misaligned,"the source noted.
Terms of thegroup's takeover bid to Oi will likely be revealed to shareholders and before a reorganizationvote is done, the source added. São Paulo-based advisory firm Íntegra Associadosis also working on the proposal, the second source said.
Oi filed forbankruptcy protection in June, which is reportedly the largest bankruptcy filingin Brazil to date, with some $19.5 billion in related debt.